Satyam cuts flab in city

HYDERABAD: Satyam Computers is now scaling down its operations in the city. It has shut one office in Somajiguda and is in the process of vacating its Karkhana premises as well. The company has already vacated the three floors occupied by it in the Lakeshower Towers (popularly known as LST) in Somajiguda.

According to sources in the company, this move is part of the firm’s cost cutting measures as the lease of both these units are up for renewal soon and the company, in its current financial state, cannot afford to run so many offices. Until recently Satyam had 14 working units in the city.

Sources add that the IT firm had begun working towards the closure of these units a few weeks ago by shifting out staffers stationed at these two places to its other offices. Employees based out of LST were shifted either to the TSR Towers office in Somajiguda or the two units in Madhapur, while those working at the Karkhana branch in Secunderabad are now being moved out to the Satyam Technology Centre (STC) in Bahadurpally, which incidentally is also the global headquarters of the firm.

"This unit was expected to shut down by the end of April itself. But now we hear that the process will take another month or so," said an employee working at the Karkhana branch. He added that the branch with a strength of around 500 staff, primarily houses people on the bench and those working on some internal projects. "While those on projects are being shifted out to STC, we fear that those on the bench will be shown the door before they shut shop," said another employee stationed at the branch. The LST office, that now lies vacant, housed the finance department of the IT firm among a few other smaller sections.

While the expiry of lease appears to be the prime reason for closing down the two units, sources indicate that a huge chunk of people stationed at these offices have also quit the firm over the last few months, cutting down on billable operations being carried out in these units.

"Hence I feel that the company sees no point in running these two places where productivity has fallen considerably," said a senior employee.

The news of these units closing down has added to the concerns of Satyamites who now fear further layoffs and pay cuts. Employees stationed at STC also fear that this shift might cause overcrowding at their unit and could leave several staffers without terminals to work on.