Employees of CA Technologies have alleged that the company is resorting to large-scale retrenchments after it was acquired by semiconductor device supplier Broadcom Inc. last month.

According to IT employees association ForIT, the number is “unprecedentedly high”.

“CA and Broadcom are bound to follow the laws of India. Such scale of activity can only happen after taking permission from the government, that too in the case of closure,” a leader of ForIT has said, commenting on the reported sackings.

The all-cash transaction between the two companies had put the size of the deal at about $18.4 billion. CA Tech has huge interests in India, with Hyderabad housing a large technology development centre at Gachibowli.

“This (retrenchment) is grossly illegal and violating all laws of the land. We request all those threatened of retrenchment not be bullied by the management,” a ForIT leader said.

“We demand CA Tech stop such illegal activity and appeal to the government to intervene immediately and protect the interests of the employees who are being illegally shunted out,” he said.

Talking to BusinessLine , a CA Tech employee said there was apprehension among the employees about their future. “Some of us have been sacked,” the employee said on condition of anonymity.

CA Tech response

CA Tech, however, claims that there is no planned restructuring or related retrenchment prior to the close of the transaction with Broadcom. The transaction is expected to close in the fourth calendar quarter of 2018. "The numbers provided by Forum of IT Professionals are speculation and we do not comment on rumours,” a CA Technologies spokesperson said.

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