Satyam may sack 8,000 non-billable employees

Satyam Computer is likely to sack most of its ‘non-billable’ staff, up to 8,000 employees, working in marketing, HR and administration wings, after Tech Mahindra takes charge of the company from June 1.

A Satyam official said there was no doubt that there would be large-scale sacking, mostly of the support and non-billable staff (other than hardcore software engineers) once Tech Mahindra directors come on board from June 1. The surplus staff is about 10,000-12,000 and the ‘least painful’ way of sacking is asking the bench, non-billable and support staff to go. The company spokesperson said that at the moment these were mere speculations.

Sources also said the outsourcer may opt for “virtual pool” sacking method whereby the company would ask some of the staff to take 75 per cent of their salary and take one year off and look for a job elsewhere with the fragile assurance that they would be recalled, if required.

Meanwhile, a board member of Satyam said: “We get the indication from the Company Law Board that once the four Tech Mahindra nominees join the Satyam board in June 1, CLB may direct the government-nominated board members to resign and ask Tech Mahindra to have the entire board representation any day after that.”

Sources in CLB said it may give the direction after getting status report from the company. But at the moment there was no such request either from the government or any of the board members appointed by it. When contacted Satyam Board Chairman Kiran Karnik said "Our (the government-inducted board's) job is done. There is a new owner now, there is stability in the company".

The company, according to sources, is also looking at changing the brand of Satyam like name and logo as it perceives the word fraud is now associated with it forever.These are long term policy decisions and can only happen once Tech Mahindra fully takes over.

Once the government takes off its board members, Tech Mahindra along with its own members can also appoint independent members as per the requirement, said the member.