Satyam may lay off over 12,000 employees

Satyam Computer Services, which is now controlled by Tech Mahindra, is planning to lay off 12,000 to 14,000 employees.

Sources said that the new management made a formal announcement before senior management personnel on Thursday on the issue of reducing manpower by up to 14,000 people.

Satyam currently has just over 40,000 employees, of which 19,000 are 'billing employees,' while just over 20,000 are 'non-billing' staff. Almost everyone currently on the 'bench' is in danger of losing employment at Satyam, a source said.

Of these 20,000-odd non-billing staff, around 12,000 employees are those who work on various projects onsite or the foot-soldiers; while some 7,000-odd are from general management, operations, HR, and other competencies.

Sources say that 80 per cent of the foot soldiers and 50 per cent of the management staff among these will be asked to go on a 'sabbatical', an industry euphemism used to sugar-coat a brutal lay off.

The junior staff that would be asked to take a sabbatical will get a compensation of six months of basic pay, while the seniors would be given three months of basic pay. Basic pay ranges between 25 per cent and 30 per cent of total salary.

Source: Rediff