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However we write this with
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Bangalore:
IT firm Siemens Information Systems (SISL),
has laid off 128 employees from India, as part of its cost cutting
measure. "As a part of our cost-cutting initiatives, we have
released 128 employees from one of the business units," said a SISL
spokesperson to Economic Times. He commented on the claim by The IT-ITES
union UNITES India, who said that the number of employees laid off
by the company is as high as 500. The union further claimed that
Siemens is laying off its employees in Bangalore, violating the
Industrial Dispute Act
SISL is
the Indian subsidiary of the giant German multinational Siemens AG.
SISL has over 5000 employees in India, out of which 3000 are in
Bangalore and the rest are spread across in Mumbai, Chennai, Delhi,
Gurgaon, Kolkata, Pune and Secunderabad.
In an email to Deccan Herald, a SISL spokesperson said that due to
unfavorable market conditions and the global economic slowdown, they
were forced to take this action. "The System Development and
Engineering (SDE) business unit of SISL, delivering software
engineering services to external customers has been under cost
pressure, necessitating it to realign and optimize its processes, as
well as resources for attaining business sustainability.
Consequently, the company has
launched a series of initiatives to reduce its cost base, which
included the release of over 100 employees from the SDE business
unit," he added.
The laid off employees were in a state of shock. Many of them were
recently recruited and were entry-level software engineers. "I don't
know how to tell my parents and wife that I have lost my job. My
dreams are shattered," said one of the laid off employee.
SISL says that they have compensated the employees affected higher
than their contractual terms. While many employees claim that they
have just been told verbally about compensation, but nothing has
been paid so far.
"As the sole representative entity for workers in the IT and ITES
establishments, we condemn Siemens for firing its employees and
violating Section 25-F of the Industrial Disputes Act," said Karthik
Shekar, General Secretary, UNITES. Shekhar further added that the
figures provided by the company does not include the number of
employees who were on contract. He claims that in the last one
month, the company has laid off more than 128 employees.
In December last year, National Association of Software and Services
Companies (Nasscom) had predicted that the IT industry will continue
to be a net hirer in financial year 2009. But things are not looking
very bright for the IT sector and software engineers' jobs might not
remain safe in the short and medium terms.
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