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With major IT companies, including Cognizant Technology Solutions, are resorting to retrenchment of employees, the Tamil Nadu Labour Commissioner has called for a meeting on Monday evening with officials of leading IT companies having a presence in the State.
The meeting was called after the Union of IT&ITeS Employees and All India Forum for IT and ITeS employees wrote to the Commission alleging mass retrenchment of employees in the IT sector.
Related news:Another round of job loss looms for mid-level IT employees
In response to the letters from the unions, Labour Commissioner R Nanthagopal on November 15 wrote to Nasscom and 19 companies including Cognizant, Infosys, Capgemini, HCL, Wipro and IBM, requesting their officials to attend the meeting to discuss the issue of retrenchment of employees in the sector.
On October 31, Cognizant’s CEO Brian Humphries told analysts that the downsizing was to improve the cost structure to partially fund some of the planned investments and advance the growth agenda. The gross reduction is expected to lead to a net reduction of 5,000-7,000 roles (about 2 per cent of the company’s total workforce), as the company aims to re-skill and redeploy nearly 5,000 of the total associates impacted, he added.
Also read:In cost re-jig move, Cognizant to lay off up to 12,000 staff
There are media reports that other companies are also resorting to retrenchment, though there was no official announcement.
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