Unitech lays off 10% employees

 

The country's second largest realty firm, Unitech, has reduced its workforce by about 10%, out of a total of 1,700 employees, as part of its cost-cutting measures on the back of a credit crunch faced by the company.

Besides, downsizing employees strength over the last 4-5 months, the company is also not filling up vacancies, which were left empty in the process of normal attrition.

"Our normal attrition is there. Naturally we are not looking for replacements... And we have let go trainees in over a period of 4-5 months," Unitech Chairman Ramesh Chandra told PTI.

The company's current rate of attrition is about 15-20% a year, he added.

Asked about the number of people that the company has fired, he said: "It is to the extent of 10% of total workforce and total is about 1,700 people."

He, however, said the company has not cut salaries of its employees yet. Besides, Unitech has also shifted some employees to its newly formed telecom venture from the real estate business.

"Our telecom company's requirement is very large. We have transferred some people from Unitech to Unitech Wireless (the telecom subsidiary)," Chandra said without giving details.

Reeling under slowdown and heavy credit crunch, the realty players have recently either cut jobs or slashed employees' salaries.

Earlier in this month, Parsvnath had cut salaries of its employees in top and middle level management by up to 20%, while Omaxe had fired 70 employees and also lowered the remuneration by 10%.

The country's largest realty firm DLF had also hinted at firing people if the demand of the sector would not improve.