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| Satyam board may meet June 11, job cuts on agenda |
| Press Trust of India / New Delhi Jun 04, 2009, 19:07 IST |
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The full board meeting of Satyam Computer is likely to be held on June 11 after its new owner Tech Mahindra assumed charge and the board may draw a consensus on the sensitive issue of laying off as many as 5,000 employees in phases.
Sources said the meeting is scheduled to be held on next Thursday or Friday and for the first time the full board -- six government-nominated members and four member from Tech Mahindra (through its arm Venturebay Consultants) -- will discuss the business strategies.
A company spokesperson said as and when the meeting takes place, there will be comprehensive discussions on all related issues. He, however, did not divulge details of the agenda or whether or not the meeting would look at ways on how to rationalise the employee strength.
Sources said given the sensitivities of the situation, the board is likely to draw a consensus on the 'lay-offs' to be undertaken which may take the shape of keeping 5,000-10,000 people on the bench (reserve).
Tech Mahindra CEO Vineet Nayar had recently said Satyam has 10,000 surplus staff and the company would look at the 'least painful' ways to handle the situation.
"It is a question of revival and viability," they said.
Last week, Corporate Affairs Minister Salman Khurseed had said the government will not turn a blind eye to any lay-offs in Satyam.
Sources said the company may be forced to ask about 5,000 employees to leave out of the support staff, who are not on the software projects.
They said that out of 12,000 employees on the bench, 7,000 employees are currently in-between projects, 500 are on unpaid leave and sabbaticals, and the remaining 4,500 are under training.
Tech Mahindra feels that compared to the billing, Satyam has the largest number of manpower than any other IT company. So, some amount of rationalisation is necessary to make the company viable again.
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