Mindtree denies paycuts

Courtesy: ITExaminer.com
Indian IT firm Mindtree Consulting maintains it doesn’t see the need to lay off employees at its Bangalore offices. In fact, the firm said it is not even contemplating salary cuts. But one employee told IT Examiner that salary cuts have been announced.

The employee, working on a telecom project, said the company has communicated internally that salaries will be rolled back to the previous year's levels.

Our source, however, could not confirm if the company was trimming salaries across the board.

A Mindtree spokesperson rubbished the news. 'No. There is no truth in this statement. In fact, Mindtree has stated clearly to its employees that salary reductions are not part of its current plans. Nor are lay-offs part of Mindtree’s plan,' she said.

Mindtree did not share details about cost-cutting.

The company reportedly cut salaries in 2001, during the dotcom bust. But the headcount back then was under 500. Mindtree now employs over 5,000 people in India’s technology capital.

'In fact, during the earlier recession cycle [2000-01] when Mindtree was only about two years old, it was clearly stated that Mindtree wouldn’t lay off even a single employee, and it was abided by,' the spokesperson said.

Our source also said the company is adopting other cost-cutting measures like consolidating operations at a single office, moving employees from a leased facility in the city to its own campus on the outskirts of Bangalore within two months.