Mumbai
June 3: The Satyam Com-puters chairman, Mr Kiran Karnik, on Wednesday ruled out any government intervention in the fraud-hit company as there will not be any retrenchment as reported in the media. Speaking with this newspaper, Mr Karnik said: “The board is really concerned about the situation. How-ever, there is no need for government intervention at the moment as there will be no retrenchment.”
There were media reports on Wednesday saying that government representatives on the Satyam board was concerned about retrenchment and would ask for the government intervention. The corporate affairs minister, Mr Salman Khurs-heed, had told reporters on Sunday that the government will not turn a “blind eye” to the issue of layoffs in Satyam as the government still has a relevant presence in decision making.
“Satyam Computers has about 10,000 excess staff. At the same time, the overall situation of the IT sector is not good enough and the same is the case with Satyam. However, there is no proposal of any retrenchment,” Mr Karnik said.
The company officials had claimed that the excess staff would be retrenched in two to three phrases.
Mentioning that retrenchment could not be the solution to overcome the situation, Mr Karnik further said: “To reduce the cost burden, there are many ways other than the retrenchment. The company is trying to explore the ways such as salary cuts, efforts to boost the business and some sort of restructuring.”
Tech Mahindra officials could not be contacted, but sources in the know said that the statements of the Tech Mahindra officials were miss-represented.
Earlier, Mr Hari T., Satyam’s global head marketing, had reportedly said: “Tech Mahindra is expected to take a final call on the matter by June 21.”
The Tech Mahindra chairman, Mr Anand Mahindra, had also indicated during a press conference here that if there would be retrenchment of the excess staff then it would be as painless as possible.
Source:
http://www.deccanchronicle.com/business/karnik-rules-out-layoffs-943
June 3: The Satyam Com-puters chairman, Mr Kiran Karnik, on Wednesday ruled out any government intervention in the fraud-hit company as there will not be any retrenchment as reported in the media. Speaking with this newspaper, Mr Karnik said: “The board is really concerned about the situation. How-ever, there is no need for government intervention at the moment as there will be no retrenchment.”
There were media reports on Wednesday saying that government representatives on the Satyam board was concerned about retrenchment and would ask for the government intervention. The corporate affairs minister, Mr Salman Khurs-heed, had told reporters on Sunday that the government will not turn a “blind eye” to the issue of layoffs in Satyam as the government still has a relevant presence in decision making.
“Satyam Computers has about 10,000 excess staff. At the same time, the overall situation of the IT sector is not good enough and the same is the case with Satyam. However, there is no proposal of any retrenchment,” Mr Karnik said.
The company officials had claimed that the excess staff would be retrenched in two to three phrases.
Mentioning that retrenchment could not be the solution to overcome the situation, Mr Karnik further said: “To reduce the cost burden, there are many ways other than the retrenchment. The company is trying to explore the ways such as salary cuts, efforts to boost the business and some sort of restructuring.”
Tech Mahindra officials could not be contacted, but sources in the know said that the statements of the Tech Mahindra officials were miss-represented.
Earlier, Mr Hari T., Satyam’s global head marketing, had reportedly said: “Tech Mahindra is expected to take a final call on the matter by June 21.”
The Tech Mahindra chairman, Mr Anand Mahindra, had also indicated during a press conference here that if there would be retrenchment of the excess staff then it would be as painless as possible.
Source:
http://www.deccanchronicle.com/business/karnik-rules-out-layoffs-943