1.5 lakh employees in India’s IT industry might lose their jobs over the next three-to-six months. Most of these layoffs will happen in small IT companies, HR experts said.
The industry employs about 45-50 lakh, of which and smaller firms account for about 10-12 lakh.
The top five IT companies recruit about 10 lakh people.
As novel coronavirus outbreak intensifies, employees have become the casualty.
The entire travel and hospitality industry was struck, production suspended.
Companies have already warned investors about their performance in the upcoming quarter.
The lockdown, which in some countries has been extended till May, is not helping matters either.
More than anything, it is the uncertainty that is impacting decisions.
Smaller businesses have continued to lay off workers on every project ramp down.
ITeS-BPO firm Fareportal, which caters to the travel industry, laid off more than 300 employees.
IT union has claimed that the company had asked employees to resign by giving a two-hour notice.
It is unclear if the company will lay off more employees.
The move comes after the market of the firm dropped by 85%.
Besides laying off employees, pay cuts for executives and the CEO’s is being done.
Experts expect the number of people laid off to rise as the situation gets worse.
Employees who were supposed to be deployed in new projects are now stalled.
Employees are under pressure and are likely to be asked to leave next.
With hardly any job openings in the market at least for the next few months, techies are going to find it almost impossible to land any job.
Most firms have paused hiring and many startups have announced pay cuts.
However, there is still no clarity on how long it would take for the companies to recover.
Another expert said it may take longer for recruitment to resume.