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While many large broking

Believe it or not, a young
houses have stopped new Patni Computer Systems has
recruitments, others have put their workforce in the retail space seems
to be the mantra for most retailers. laid off hundreds of employees citing
expansion plans on hold. Employees non-performance issues. “This was an
are bracing themselves for more The average age of staff at Cinemax
India and Koutons is 25 and 30 at absolutely regular appraisal that is
modest increments this year while important for any performance driven
several sub brokers are examining Levi Strauss. Several retail brands
are relying on young honchos to steer organisation. It is something standard
alternative careers. Recruitments we do every year. Employees who
and job cuts in brokerage houses their businesses in a market where
getting skilled resources is a serious have got a 0-1 rating on a scale of 5
operate on the lines of share typically form the basis for the first-
prices. The pace and the number of challenge. Most retail companies
cater to the age group of 15–45. It level shortlist. These are
retrenchments in a falling market is performance based resignations,
twice than that of staff added in a makes perfect sense to pick up young
honchos who find it easier to we’ve not issued any termination
booming market. Vineet Bhatnagar, letters,” said Rajesh Padmanabhan,
MD of Man Financial — a large customise services to this target
audience,” notes Kishore Bhatija, executive vice-president and head-
broking house that predominantly global HR, Patni. He said the
caters to institutional clients, says CEO, Inorbit Malls. Growing at a
rapid pace, the biggest challenge that comparable figure for last year was
his firm has decided to “go slow” on 148 employees. TCS had asked about
all new recruitments. Other large lies ahead for this industry is meeting
the obvious demand supply gap. Add 500 employees to leave for reasons
firms like Edelweiss Capital and of nonperformance. Shortly after
Motilal Oswal too have put a freeze to this the task of finding the quality
of leaders. that, multinational IBM was reported
on new hiring, although officials to have laid off 700 freshers. In the
here point out that the situation is case of TCS, the figure was about
not yet so dire as to consider 0.5% of its total workforce and for
downsizing. IBM about 1% of its India workforce.
For Patni, the figure is closer to 3%
of its 14,800.
German industrial conglomerate Siemens AG plans to cut
around 4% of its workforce as part of an overhaul and as a result of
the global economic downturn. Siemens wants to cut 16,750 jobs
globally, of which 12,600 are mainly in administration, to help Europe’s
biggest engineering group reach a savings target of 1.2 billion euros
($1.9 billion) by 2010 and boost profit margin levels. Another 4,150
jobs will be eliminated through the company’s restructuring

If IT/ITES companies are feeling the heat of the US

slowdown, recruitment companies for the sector appear more
than scorched. Though the severity of the impact has been mainly
felt by companies in entry-level staffing with some seeing a
whopping 60% fall in earnings, mid-level staffing firms are
fearing the worst in the days to come. “Earnings for recruitment
consultants have definitely slumped over the last six months. The
impact on earning from key accounts has dropped by 60% with
further impacts on the pricing front,” said TeamLease Services’
vice-president of permanent staffing, Sampath Shetty. “For some
individual consultants, the income is down to zero,” he added.
Typically, a small firm with 10-15 people and working in entry-level
staffing earns around Rs 15 lakh per month where employees
work on a low-fixed, high-commission salary. A 60% fall on such a
base could, in some cases, even be life threatening. “With the
metrics for hiring moving away from quantity to quality with
prescribed non-negotiable cost to company for candidates, these
expectations are marginalizing the recruitment companies’
productivity and pushing for more value adds at similar pricing,”
Mr. Shetty added.