workforce by a painful 25% as companies scramble to sustain operations amid the global economic turmoil.
Assocham in a survey said the layoffs would be in seven key industrial segments — steel, cement, IT-enabled services/BPO, financial and brokerage services, construction, real estate and aviation — "to begin with." The chamber also said the negative sentiments could be turned around if RBI "discontinues with its tight monetary policy" and slashes rates for bringing in more liquidity in the market "which in turn would create lot of economic activities for creation of job opportunities."
"The promoters are no longer in a position to sustain their operations with existing manpower strength," said the chamber that based its "analysis" on "direct interaction with players concerned in identified sectors." Experts, though, doubted the chamber's pessimism.
Assocham president Sajjan Jindal said HR heads of a majority of companies in the badly-affected segments had drawn up "conclusive plans" to curtail workforce by 25-30%, "announcements for which is likely in next 10 days or so." It said the layoffs could have come earlier, but companies did not want to give pink slips before Diwali.
"Employers have no other alternative as part of their corporate strategy... for sustaining their operations with squeezed margins (even) after drastic cost cutting measures," Jindal said, quoting from the chamber's analysis. Companies had already denied bonus and ex-gratia to employees, Assocham added.
The analysis said, "... majority of non-performing working force with little productivity, punctuality and efficiency knows that (the) axe is going to fall in view of the current economic negativity and therefore corporates are not anticipating any resistance in executing their conclusive restructuring and downsizing measures."
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