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Rediff News  All News  » Business » No layoff in Satyam, Tech M to take final call: Karnik

No layoff in Satyam, Tech M to take final call: Karnik

May 06, 2009 19:59 IST

Satyam Board chairman Kiran Karnik said on Wednesday so far there has been no layoffs in the company but it is up to the new owners Tech Mahindra to take any such decision.

"The decision (of layoffs) would lie with the new owners that is Tech Mahindra. . .As far as we know there have been no layoffs at Satyam," Karnik told PTI.

Asked if the company has seen any new clients coming on board after the takeover announcement by Tech Mahindra, Karnik said, "Work has been coming in and lot of projects but no significant clients that I know of."

Last week, three of Satyam's big clients -- Nestle, Nissan and CIBA -- who were on wait and watch mode, assured the firm of their continued support with with the firm. Nestle is also believed to have given some additional business to Satyam.

Analysts had feared that post the acquisition of the firm by Tech Mahindra, clients of Satyam, who were sitting on the fence, would jump to other vendors.

However, post the acquisition some of the companies had expressed confidence in the entity and pledged to continue business with them.

Satyam Computers plunged into crisis after its founder B Ramalinga Raju in January admitted to have cooked the books of the company for year.

In April, IT firm Tech Mahindra announced to acquire a 51 per cent stake in the beleaguered firm for Rs 2,900 crore (Rs 29 billion).

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