Layoffs begin at Satyam, non-techies first to go

Though corporate affairs minister Salman Khursheed had hinted at government intervention, the first phase of layoffs has started at Satyam Computer Services. Trainers, HR and sales & marketing executives are being singled out for action by Tech Mahindra, Satyam’s new owner.

“The first phase of layoffs has started. In the second phase, employees who have been on the bench for less than three months would go away,” said an official source. It couldn’t be ascertained how many on the bench have been asked to leave. “Some senior executives on the bench are being offered almost 50% of their salary or an option to go on a sabbatical. Several benched senior executives have moved out,” the source said.

On Monday, commenting on media reports that 10,000 employees could be retrenched at Satyam, Khursheed had stated, “Layoffs is something we are not going to turn a blind eye to, as we have a relevant presence in decision making (in Satyam Computer Services.)”

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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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