Satyam may axe 10,000 employees next month: Headhunters

A very good move from the management, as 60% of the revenues of the company is used for paying the salaries of the employees of Satyam Computers Ltd. The employee strength should be halved and salaries reduced so that the company becomes lean and thin. It can outsource its job work to other firms using the Satyam Brand Name, saving on the employee cost.

BUT THE QUESTION WHICH IS HAUNTING ME IS THAT, DID Mr. Raju Actually write the letter or it is just another of those letters resembling the case of Pyramid Symeria Ltd, used as a tool by some groups to hammer the stock right and left??!!!

Or the money has actually been siphoned off from the company's coffers to pay off the kickbacks (a gentle word for bribe) for the orders obtained by Maytas Infra Ltd and Satyam Computers Ltd, to their "Political Masters" (read Political Parties) in Andhra Pradesh (read Hyderabad).......In that case it is a case of mere pilferage of the funds and not the fault of its auditors, PWC.

However, I am still bullish on the Information Technology sector per se.....even after Satyam Computers episode. Even in case of Satyam Computers Ltd we do not know the real issue, what we are getting in the media are just speculations. World does not move on speculations and also no convictions can be done unless some facts come out.......

No one in the Satyam Computers Ltd have till now said anything about the letter written by Mr. Ramalinga Raju......Moreover, Honourable Courts need evidence to persecute someone---it needs solid facts not some stories cooked-up by the media.......

With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm.

"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.

Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging said that the company, has taken care of the salaries for December.

Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.

The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment.

Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.

IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action."

"We have received over 7,000 hits since the news break. Yesterday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.