French multinational tech services major Capgemini has fired nearly 500 employees in India over slow growth of its projects and failure to ramp up some accounts. The company said departures, re-skilling, hiring and reassignments are a part of big companies like Capgemini, reported The Times of India. The tech giant houses more than 1 lakh employees in India, which is more than half its strength worldwide.
"As an IT services company, our people are at the heart of our business and we are permanently rolling out widespread re-skilling programmes to build new capabilities that clients' evolving digital transformational needs. The net headcount in India has continued to grow well with the strong hiring year-on-year and out the perspective for 2020 look good too," the company said, the daily reported.
Before laying off employees, the company allows them to be on the bench for 90 days, following which they are moved to the corporate level, where the company's business units try to find billable projects for them, mentioned the report. Those who fail to find projects are eventually asked to leave the company.
India's tech services sector is struggling to keep up growing revenues, and Capgemini is not the only tech company to lay off its employees in India. On October 31, IT services firm Cognizant said it would remove 10,000 to 12,000 mid-to-senior level employees from their current roles. CEO Brian Humphries said that 12,000 was a gross reduction number and that the net reduction would be approximately 5,000 to 7,000 roles since the company aims to re-skill 5,000 associates, thereby lessening the impact. These numbers, however, exclude other 6,000 roles that are likely to be impacted because Cognizant is exiting a subset of its content operations business.
Edited by Manoj Sharma