Thursday, January 8, 2009

Update: Satyam may axe 10,000 employees

With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm.

"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.

Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December.

Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.

The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment.

Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.
Satyam, News from Satyam, Message from Ram Mynampati, Satyam Interim CEO, Satyam CEO message

This what i read "In a country where it takes more than 10 years to prove the guilt, here is a man who has confessed everything before. we only see 7000 Crores but everyone forgets lacs of crores that he has bought to India and lacs of families that enjoyed his success. In Business anyhthing can happen and which he is ready to face. I wish Mr.Raju to come back the way steve Jobs of Apple Computers bounced back and built a new company with more integrity than ever. "
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