Technology solutions provider KPIT Cummins Infosystems is one of these. It has sent some employees on compulsory leave and is weighing a salary cut for all employees next year. Sending employees on leave without pay is an effort to reduce operational costs. While a company spokesperson said there was no compulsion in sending employees on leave, some employees told ET: “We have been told to go on a fortnight’s leave without pay,” thus indicating the compulsion behind the leave.
These employees added that they have been told the ‘bench’, which is a group of employees reserved for emergency work, would be reduced next year because revenues from clients has fallen.
The company spokesperson said, “We are restructuring the business because of the global recession. We are working out how to reduce operational costs in order to sustain the business if conditions worsen in the next few months. The only step we have taken regarding employees is warning them of the possibility of a reduction in the variable pay, although a decision on this has not yet been taken. There are no plans to reduce the number of employees.”
The Pune-based KPIT had a market cap of Rs 210.20 crore as on December 24. Among its investors are the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which invested $2.5 million in 2006. This was preceded by an investment of $8 million for an 8% stake by LB 1 Group Inc, an affiliate of the now defunct investment banker Lehman Brothers.
This preferential allotment had brought down promoter share holding to 42%. The IFC investment was in addition to its prior commitment of $11 million long term debt to KPIT Cummins. Cargil Ventures and Cummins Inc are the other strategic investors in the software company.
KPIT Cummins’ moves now follow a 2% across the-board salary cut by Persistent Systems, a Pune-based outsourced software product developer.
1 comments:
As a xemployee of KPIT CUMMINNS I want to say that this company giving hectic enviornment to employees as such they dont have any upcoming projects in 2008-2009 they have lay of 800 employees from pune and gives reason that on performance basis they have been laid off as such they are not showing any performance based result sheet to employees . And forcfully said to 800 employees to give resignation without any reason. I am one of them .I have experienced these situation .Still they are recruting freshers and after 1 or 2 months later they gives the same treatment to them . So I suggest this company doesnot have any management regarding projects .Bcoz currently they have loose 3 project which are take over by INFOSYS and PATANI.There is reason that KPIT CUMMINS don't complete projects within deadline and no 6 sigma level project correctness . So I request to you all dont join KPIT CUMMNINS and don't give any of the projects to KPIT CUMMINS INFOSYSTEMS.
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