TechM gets ready to lay off surplus Satyam employees

Tech Mahindra, the new owner of Satyam Computer Services, on Wednesday, prepared the ground for laying off excess staff, with the senior management making it clear that all soft options were exhausted. CP Gurnani, a Satyam board member, who addressed middle- and senior-level employees in Hyderabad made it clear that surplus staff needs to be cut, said an associate privy to the address.

The proposed lay-offs may be done within the next few weeks. Satyam has employees in four bands and is working out a formula that would see maximum lay-offs at the junior and middle levels.

Mr Gurnani’s statement comes barely a few days after Vineet Nayyar, the CEO of Tech Mahindra and now a whole-time director on the Satyam board, declared that Satyam had an excess staff of around 10,000.

The defamed founder of Satyam Computers, B Ramalinga Raju, had hired people by the droves to inflate revenue and profits in the NYSE-listed firm.

Satyam’s Australian head Nangia quits

Satyam suffered another setback in Australia after Deepak Nangia, the company’s head for the region put in his papers.

A Satyam spokesperson confirmed the exit and said the executive was serving his notice period in the beleaguered IT firm. Satyam derives almost $200 million in revenues from Australia, according to experts.
Source: TheEconomicTimes