Layoffs at Top IT Companies continues - Snapdeal Cuts Its Workforce By 80%

Three of India's top IT companies saw significant reduction of their workforce in the quarter ending June, according to a report in HT Mint.

"The $154 billion Indian information technology (IT) sector, once India’s largest creator of jobs, is now struggling to even add to its workforce. For the first time, three of the five largest IT companies saw their workforce shrink in the quarter ended June 30. The five firms, which together employed 878,913 people at the end of the June quarter, saw their workforce shrink by 1,818 people."

According to Economic Times,

E-commerce major Snapdeal on Monday revealed that it is facilitating a major layoff in the company, with an agenda to cut down 80 percent of its employee strength.
A senior official of the company told ANI that the management has given verbal instructions to their department heads to prepare the list. 
Additionally, the official also revealed that the owners of the firm have reversed the merger which was to take place between Snapdeal and Flipkart. Rather, with the money from the sale of Freecharge received ($50 million), the firm has decided to sack around 1000 employees out of their present workforce of 1200, and carry forward with the remaining.
TCS, Infosys and Tech Mahindra, the leading lights of the $150 billion IT industry in the country, cut down each of their strengths by roughly 1500-2000 employees.

At the end of March 2017, India's IT sector employed 3.9 million people and was projected to add another 150,000 during this fiscal, according to the National Association of Software and Service Companies (Nasscom). However, in light of the growing number of layoffs, this ambitious target seems unlikely to be fulfilled.

Over the last several weeks, companies like Wipro, Cognizant and Infosys have already announced massive layoffs to downsize their existing employee strength. An investigation by Hindustan Times claimed as many as 56,000 people are likely to lose their jobs in the IT sector in India this year.


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