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Post Diwali dhamaka: 25-30% job cuts in offing

Source: PTI
October 29, 2008 16:03 IST
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After Diwali festivities, India Inc is set to show pink slips to 25-30 per cent employees in businesses like IT, aviation, steel, financial services, real estate, cement and construction as part of their cost-cutting measures, industry body Assocham has said.

These seven sectors are no longer in a position to sustain their operations with existing manpower strength, Assocham said in its study on 'Jobs Scenario Post-Diwali.'

"HR heads of these sectors have drawn up conclusive plans to curtail their workforce by 25-30 per cent, announcements for which is likely in the next 10 days or so," Assocham president Sajjan Jindal said.

Without naming the companies which would take this step, the chamber said the corporates have no other alternatives to sustain operations with squeezed margins after drastic cost-cutting measures like denying bonus and ex-gratia.

Placement agencies have already deferred their plans as crisis ridden sectors have stopped requisitioning about their human resource requirement in view of current meltdown and job seekers are well aware of this factor, which has created confidence crisis in most of them.

The chamber further said that the negative sentiments in the seven sectors could be turned into opportunities provided the Reserve Bank discontinues with its tight monetary policy and cut the interests rates by at least three per cent.

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