Retrenchment fear grips Pentamedia Graphics employees
By Venkatachari Jagannathan | 20 Jun 2001
The pink slip phobia is what is afflicting employees of the Rs.552.38 crore turnover Chennai-based Pentamedia Graphics.
For the past three weeks or so the company employees are talking in hushed tones as to the departments that would be asked to reduce their work force and the number of staff who will be put on the chopping block. The fear started as the management started calling for various activity reports. The company is on the cost cutting drive and all divisions are even asked maintain a telephone logbook to monitor outgoing calls.
The departments that are rumoured to down size are Maya and Soft Image. Though Maya and Soft Image are names of two different 3D animation software's, the divisions using them are called by that name itself.
Around 45 employees belonging to these departments are being said to be on their way out. According to industry sources, Pentamedia Graphics went on a recruitment binge last year in the wake of emerging competition apart from giving good pay hike to other animators. And it seems the new recruits/trainees who will be given the pink slips.
Denying any lay off moves on the part of the company, Ms Richa Pande, head, HR refused to comment anything further and asked to contact the company's spokesperson who, despite repeated calls, seemed to be too busy to answer calls to clarify this issue.
Meanwhile the company's much publicised acquisition of Film Roman Inc, USA seems to have hit a dead end with the latter's chief executive, Mr. John Hyde, blowing hot and cold.
The latest on the issue is that Film Roman plans to initiate legal proceedings in US courts against Pentamedia Graphics for breach of agreement. The US company plans to claim damages for breach of agreement, break up fee, damages for fraudulent inducement and misrepresentation and reimbursement of attorneys/accountants' fees and related costs.
However Pentamedia Officials are hoping that the deal, despite its twists and turns, will ultimately come through. Initially it was agreed that Pentamedia Graphics would acquire 60 per cent stakes in Film Roman for $15 million paying hard cash. Th deal was faulted by analysts on the grounds that the Chennai based company will be paying a huge sum at a time when Film Roman was posting losses and its shares getting delisted from Nasdaq and shifted to the Counter
trading.
Subsequently the deal was reworked into stock cum cash deal and this too fell midway as Film Roman contended that Pentamedia Graphics was not able to guarantee the floor price of the latter's' GDRs listed in the Luxembourg Stock Exchange.
Again the two companies reworked the deal. Under the new agreement Pentamedia Graphics would acquire 49.9 per cent for $10 million (See Film Roman deal-the saga continues).
With Film Roman showing disinterest in giving a major stake to Pentamedia Graphics, the latter is looking for studios in US/Canada having profiles similar to Film Roman though much smaller in size.
For the past three weeks or so the company employees are talking in hushed tones as to the departments that would be asked to reduce their work force and the number of staff who will be put on the chopping block. The fear started as the management started calling for various activity reports. The company is on the cost cutting drive and all divisions are even asked maintain a telephone logbook to monitor outgoing calls.
The departments that are rumoured to down size are Maya and Soft Image. Though Maya and Soft Image are names of two different 3D animation software's, the divisions using them are called by that name itself.
Around 45 employees belonging to these departments are being said to be on their way out. According to industry sources, Pentamedia Graphics went on a recruitment binge last year in the wake of emerging competition apart from giving good pay hike to other animators. And it seems the new recruits/trainees who will be given the pink slips.
Denying any lay off moves on the part of the company, Ms Richa Pande, head, HR refused to comment anything further and asked to contact the company's spokesperson who, despite repeated calls, seemed to be too busy to answer calls to clarify this issue.
Meanwhile the company's much publicised acquisition of Film Roman Inc, USA seems to have hit a dead end with the latter's chief executive, Mr. John Hyde, blowing hot and cold.
The latest on the issue is that Film Roman plans to initiate legal proceedings in US courts against Pentamedia Graphics for breach of agreement. The US company plans to claim damages for breach of agreement, break up fee, damages for fraudulent inducement and misrepresentation and reimbursement of attorneys/accountants' fees and related costs.
However Pentamedia Officials are hoping that the deal, despite its twists and turns, will ultimately come through. Initially it was agreed that Pentamedia Graphics would acquire 60 per cent stakes in Film Roman for $15 million paying hard cash. Th deal was faulted by analysts on the grounds that the Chennai based company will be paying a huge sum at a time when Film Roman was posting losses and its shares getting delisted from Nasdaq and shifted to the Counter
trading.
Subsequently the deal was reworked into stock cum cash deal and this too fell midway as Film Roman contended that Pentamedia Graphics was not able to guarantee the floor price of the latter's' GDRs listed in the Luxembourg Stock Exchange.
Again the two companies reworked the deal. Under the new agreement Pentamedia Graphics would acquire 49.9 per cent for $10 million (See Film Roman deal-the saga continues).
With Film Roman showing disinterest in giving a major stake to Pentamedia Graphics, the latter is looking for studios in US/Canada having profiles similar to Film Roman though much smaller in size.