Mumbai: Global IT companies have seen the maximum number of job cuts in the last year, and the process continues even now. Layoffs have been undertaken to cut costs so that the issue of overcapacity can be resolved. However, the way jobs are being slashed is being relooked.
From putting people in the lowest bands when it comes to performance appraisals, and getting down bench thresholds, to pushing for voluntary attrition by freezing the variable pay system for resources with low utilization, there are innumerable strategies being devised by these companies to reduce excessive resources.
Bench thresholds have been reduced from 90 days to 60 days for quicker relief from employees and to initiate faster separations. Critical KPIs such as utilization would help weed out the low performers, some companies feel. In addition to this, hiring ladders have been tightened too. Utilisation of automation initiatives has also seen a rise to reduce manpower. Campus hiring has also reduced – it is very mindful skill-based hiring and is undertaken only for critical needs.
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