In March, a techie from Pune was asked to resign from his job along with 6 other employees. After this incident, in Fareportal, an ITes-BPO firm has laid off some of its employees. The count is around 300. All these incidents are not a coincidence but are linked together. IT experts predict that around 1.5 lakh employees might lose their jobs in the next three to six months and this is just the beginning of it.
The CEO of CIEL HR services has said that the majority of the layoffs will happen in small IT firms, who are dependent on the large scale clients. Overall, there are 40-45 lakh employees are currently working in the IT industry, out of which 10-12 lakh employees are from small scale firms.
Due to the coronavirus impact, it has become a challenge for all the companies to keep the companies running efficiently. The hospitality sector and the travel sector have been hit entirely due to this epidemic. The manufacturing sector is currently paused. Few companies like Apple, Microsoft have already alerted their investors regarding the performance in the upcoming quarter.
The lockdown has been extended till May in some countries. Apart from this, the decisions were being impacted largely due to the uncertainty of the situation. The smaller firms have started laying off their employees with each of their projects being either closed or completed.
The employees were being asked to resign due to the increase in the cost of maintaining them. They were being given a choice of resignation or termination. They are told that even though they are working well, due to the client-facing problems with the corona outbreak, they cannot maintain the employees.
All these companies laying off its employees are doing this in private, without the rest of the world knowing about it. Some of the cases are quite shocking that employees were being given only two hours of time to confirm their resignation.
This situation is only going to get worse with the ongoing situation. The employees who are on the bench in various companies are being affected the most. Next comes the employees who are part of projects which are currently stalled due to the increasing expenses and the client cannot maintain the billing.
The employees who are being laid off, feel that the companies should give ample time for them to search for new jobs or maintain savings. At least two months are being asked by the employees. The situation outside is very critical. They are no jobs and no company is looking to hire new employees in this situation. This may continue for the next few months.
The hiring is paused by almost all the companies and the offers which were already given to new employees were being postponed to further undisclosed dates. However, people in IT are not sure about their future, about the current job, and about many other things. Uncertainty is at its peak in the industry, currently.