You are here: Home » Companies » News
Business Standard

IT companies may shed up to 40,000 mid-level employees: Mohandas Pai

'It's going to happen again and again and again every five years,' said Pai

Press Trust of India  |  Bengaluru 

Mohandas Pai
T V Mohandas Pai

India's information technology services may shed 30,000 to 40,000 middle-level employees this year as growth slows down, IT industry veteran T V said Monday.

The former Chief Financial Officer of IT major Infosys Ltd termed these job losses as once-in-five-years normal phenomenon with maturing of the industry.

"As in all sectors in the West, in India too when a sector matures so many people will be there in the middle level who will not be adding value to the salary they get," Pai told PTI.

Promotions are okay when are growing fast but when it slows down, people getting fat salaries will aggregate at the higher level, prompting to periodically reset their pyramids, and shedding people, he said.

"It's going to happen again and again and again every five years," said Pai, Chairman of Aarin Capital and Manipal Global Education Services.

"Nobody is entitled to a fat salary and high-paying job unless you perform, right? You have to deliver value".

"All across industry, may be 30,000 to 40,000 in a year...," he said when asked about the number of middle-level staff who would lose their jobs.

But Pai said about 80 per cent of those who lose jobs would have employment opportunities in industries in general if they are specialists.

First Published: Mon, November 18 2019. 16:40 IST