Satyam denies reports on plans to sack 8000 ‘non-billable’ staff
25 May 2009
Satyam has officially dismissed as ''speculation'', various media reports on its plans to reduce headcount after its acquisition.
Several reports last week said that Satyam is likely to sack most of its non-billable staff of up to 8,000 working in the marketing, human resources and administration departments after Tech Mahindra takes charge of the company from 1 June
Tech Mahindra CEO Vineet Nayyar had said last week that Satyam has about 10,000 surplus staff and they are looking at the least painful ways to tackle the problem.
Satyam has already called back most of its onsite staff to avoid further costs.
Kiran Karnik, chairman of government-appointed board of Satyam said that revenues are falling and cost-cutting measures have to be taken up (See: 'Overstaffed' Satyam seeks to avoid job cuts).
The surplus staff is estimated at 10,000-12,000 and the 'least painful' way of cutting it is asking the bench, non-billable and support staff to go.
Indian Express quoted a Satyam official as saying that among the non-billable staff, only hardcore software engineers could hope to keep their jobs once the government withdraws its six board members and Tech Mahindra replaces them with its own nominees on 1 June.
