Layoffs possible, says TCS
Kolkata: As part of cost cutting-measures to tackle the global economic downturn, IT major TCS today said job-cuts are possible if the situation worsens, but said there are no immediate plans for lay-offs
In a clear admission that it is facing hard times, India’s largest software exporter Tata Consultancy Services (TCS) said it plans to review the variable component of employees' salaries every quarter in an attempt to cut costs. Variable pay accounts for 20 to 35 per cent of TCS employees' gross salary, depending on their hierarchy.
The company had earlier cut employees' variable pay by around 1.5 per cent in February 2008.
CEO and MD S Ramadorai told that...
"We are also increasing employee working hours from 40 hours a week to 45 hours a week, with effect from April 1,” he added.
The company may also defer absorbing nearly 24,500 campus recruits, scheduled to join in June. Their salaries may also be revised, said Ramadorai.
“We are also focusing on more offshore projects right now to cope effectively with the recession, by moving more roles and delivery functions to offshore locations such as India,”
“In the last nine months, TCS has hired 30,000 people. For now, we have frozen our lateral hiring and may look at laying off employees if the situation does not improve. Currently, we have around 1,30,000 employees on our pay roll,” Ramadorai added.
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All employees, from trainee to the senior-most manager, get variable pay. The total variable component -- which is linked to both the performance of the company as well of the individual — accounts for around 8 per cent of the company's gross revenue.
Tags: MD S Ramadorai , Salary Freeze , 6% Hike In DA , Meltdown Effect
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