Satyam: no layoffs now, but salary cuts possible

Tech Mahindra chairman Anand Mahindra on Monday ruled out immediate job losses among the 45,000-odd Satyam employees but added that an integration team “is already in place in Hyderabad to decide on the staff strength” for the acquired company. Speaking at a press conference after the first detailed meeting with the staff of the company taken over by Tech Mahindra last week, he said, “Our immediate plan would be to retain current customers, win back businesses and retain the key 100 associates.”

The plans also include finding a CFO for Satyam, said Vineet Nayyar, CEO of Tech Mahindra. “We are on the lookout for a CFO, who would be decided in the next few weeks.” One of the first tasks of the new incumbent could be asking for a salary cut of at least 10% across all categories, a source close to the company said.

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Ghost workers at Satyam

Just how many people does Satyam Computer Services employ? In June 2008,Satyam reported it had 51,643 employees on the rolls.The company’s website and government statements after founder & former chairman B Ramalinga Raju’s confessions put the number at 53,000. Minister of corporate affairs Premchand Gupta said last Friday that the only way to determine the actual staff strength was through the provident fund office.

According to the public prosecutor arguing the matter in a Hyderabad metropolitan magistrate court on Thursday, the number of employees is 40,000. FE learns that the last time Satyam filed its monthly returns to the Employees’ Provident Fund Organisation (EPFO), for the month of November 2008, the number of employees stood at 43,622.

For December,EPFO is yet to receive the PF contribution returns from the company, although the law mandates that contributions be deposited by the 15th of the following month.

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