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Syntel looks to lay off employees
Shivani Shinde in Mumbai | February 28, 2009 11:26 IST
Nasdaq-listed IT services and knowledge process outsourcing firm Syntel has begun retrenching employees from its centres in Chennai, Mumbai, Pune and the US. While the exact number of employees being asked to quit could not be confirmed, sources said close to 1,000 employees were tipped to go. Syntel has around 11,000 employees in India.
"Close to 100 employees, with a pay package ranging between Rs 50 lakhs (Rs 5 million) and Rs 1 crore (Rs 10 million) annually, have already been asked to leave," said sources affected by the announcement. However, the company, when contacted, dismissed the allegations and said only a small number of employees have been asked to leave on the basis of performance.
"I will not agree with the number of employees being laid off. About 30 have been asked to leave as a part of our overall employee performance mechanism. Besides 300 employees who were on the bench and under training have been asked to move to the company's KPO operations," said a Syntel spokesperson.
The shifting of employees to the KPO operations is part of increasing its utilisation and reducing the bench strength.
Syntel at the end of calendar year 2008 had a total of 12,363 employees. Of these, close to 3,000 employees work for the KPO segment of the company and the rest are with the IT services segment. The company has three centres in India. Mumbai has close to 4,500 employees, Chennai consists of 2,500 people and close to 3,500 people work in Pune. Besides more that 1,000 people work in the US.
Meanwhile, the company -- in its analyst call, after its fourth quarter and full year results ended December 31, 2008 � said that it will be spending $30-$35 million (around Rs 150-175 crore). The capex will be used for its centres in Chennai and Pune.
Other than this the company might invest $4-$5 million (around Rs 20-25 crore) in buying land banks.