Capgemni seen laying off 9,000 employees in India to hire in US
09 May 2017
Close on the heels of reports that IT major Cognizant laying off 6,000 of its Indian employees (See: Cognizant axes 6,000 jobs in India, cuts variable pay) to hire more staff in the US, French IT giant Capgemni is now reported to be planning to lay off 9,000 employees.
Reports said, the layoff of 9,000 employees, which comes to nearly 5 per cent of its workforce, is likely to be the employees of the Phaneesh Murthy-founded Igate, which Capgemni acquired in 2015.
Besides Cognizant and Capgemni, there are several other, smaller, firms wanting to let go their employees to appease US President Donald Trump, for business survival in the hostile US environment.
Although Cognizant did not explicitly state its plans to retrench in India and hire in the US, an Economic Times report quoting Cognizant president Rajiv Mehta had said that the company intended to ramp up hiring in the US (See: After Infosys, Cognizant to ramp up US hiring).
Reports now say that Capgemini, too, may have similar plans. The French firm planns to hire about 20,000 employees this year, ostensibly in the US or in Europe.
That India probably will be the biggest loser in new US policy changes is becoming clear as companies yield to Trump's pressure to hire more Americans.
Earlier in February, Capgemini India's chief executive Srinivas Kandula had stated that a lot of its employees are not retrainable. "A large number of them cannot be trained. Probably, India will witness the largest unemployment in the middle level to senior level," PTI quoted him as saying at the annual Nasscom leadership summit.
Early last month, India's second-largest IT software firm Infosys announced plans to hire 10,000 Americans in a move that amounted to yielding to pressure tactics of Trump administration.
Besides hiring 10,000 Americans in the next two years, Infosys also announced plans to build four technology hubs in the US (See: H1-B review fallout: Infosys to hire 10,000 US workers).
IT leader Tata Consultancy Services (TCS) and Wipro Ltd are yet to spell out their hiring plans although, India is expected to witness the largest unemployment in the middle level to senior level.
While Cognizant's president Rajiv Mehta had denied any plans for the company to lay off employees, reports had revealed that it planned to ramp up hiring in the US.
At the same time, Cognizant was also reported to be coming out with a voluntary retirement scheme for some of its senior employees. The firm has reportedly given its senior employees an option to accept a six or nine months' severance package, whichever is applicable.
