Satyam to sack 8,000 employees

news source : DC

dated : 24-05-2009

satyam

At least 8,000 employees of Satyam Computers will be sacked from June 1.Notices have been prepared and will be issued to staff from Monday, sources said.

This comes against the assurance of Tech Mahindra, new owners of Satyam, that it would would go for the “least painful” ways to cut costs.

In the last one week, thousands of associates have been informed orally that they will receive the notice before June 1,” a senior associate with Satyam said. Of these, 800 belong to the BPO unit, 3,000 are on the bench and the rest from marketing and HR departments.

The employees have an average notice period of two months and will get their salary for June and July. Most employees have been asked not to come to office from June 1have been informed about the company’s decision to hack at staff numbers due to dwindling business.

The annual assessment report which should be implemented from June has not been taken up, almost confirming that there would not be any increments.

Tech Mahindra buys major number of shares of Satyam

satyam

Tech Mahindra, an M&M-promoted company ,a mid-sized IT outsourcer, has won the bid for Satyam Computer after bidding at Rs 58 per share. Tech Mahindra has secured complete funding to acquire a 51 per cent stake in Satyam.  Reports say that Tech Mahindra may be interested in acquiring Satyam as part of its strategy to evolve from a telecom industry focused IT firm to a full fledged IT services company spanning across all sectors. Earlier reports mentioned that HP, IBM, Mindtree would also be interested in acquiring Satyam.Satyam’s sale is likely to help restore confidence in India’s IT services sector at a time the global economic downturn has already slowed growth.