Feb 13 2014, 3:01am CST | by Forbes
Job cuts arrived at multiple IBM locations in India this week and hundreds more layoffs are expected in the coming days.
In Bangalore one IBM unit called STG, the company’s hardware division, turned into a “slaughter house”, a worker reported. “People broke down after seeing the inhuman treatment,” the person wrote in the Alliance@IBM employees’ union website.
The cuts in India are part of IBM’s global plans to lay off thousands. However, employees in India, habituated to years of boom in the technology services industry, appeared to be hard hit. Insiders described emotional scenes following the layoff announcements.
Job cuts are not uncommon in India but Indian companies rarely subject their employees to the clinical ‘cut & exit’ treatment that is usual in the West.
In contrast to the sacking and salary freeze at multinational tech companies in India, large Indian outsourcing firms like Infosys and TCS have recently announced salary hikes recently and are continuing with hiring as the industry showed signs of an upward swing after some years of damp growth.
India’s $118 billion IT services industry is projected to grow at 13-15% in the 2014-2015 fiscal, industry group Nasscom recently announced.
At IBM’s STG (Systems & Technology Group), employees were called to a meeting and sacked. Their laptops were confiscated and they were asked to leave the premises immediately. Severance packages averaged six weeks pay.
“Many employees were seen crying and exiting the building,” the employee reported, balancing their personal belongings in their hands.
Several employees wrote and berated the management on the union website. “You treated Indians like resource widgets. These people are human beings,” said one angry posting by Solidarity4IBMIndia.
IBM does not disclose worker count by region but has over a 100,000 employees in India. In addition to India, jobs were sliced in Brazil, the Netherlands and other locations.
Source: Forbes Business
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