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  • Category: Miscellaneous

    Mental state of an employee after corporate downsizing

    Corporate downsizing strategy is followed by MNC's to maintain their profitability levels. For the past few years MNC's is following this as their policy. They don't think about the future of an employee and their family.

    My friend was working in one of the top MNC in Bangalore for 6 years. Recently he relocated to his native Kerala after requesting for a transfer. My friend was one of the victim in corporate downsizing. He has 7 years of experience in IT field and considered one of the valuable resource. He didn't even expect that his name would be in the list. The reason given by the organization for such decision is really embarrassing. The reason was they could consider only the 2 months he worked in Kerala and he didn't have much to do in this 2 months and they could give preference to the people working in the same office for years. The HR people are also helpless as this is the order from the top executives. With a heavy heart he came out and the organization has agreed to pay 4 month salary as compensation. Not only my friend this was the state of many employees in various branches.

    The top MNC's appoints hundreds of employees through campus interviews each year. If they want to downsize the employees can't they stop recruiting? I understand that they give preference to their business and not on sentiments. But what about the future of employees?

    My view is at least the companies should not circulate the lay-off in media. The media clearly says the name of the companies and this has a huge impact on their next career. My friend has attended a lot of interviews then, but nobody is ready to recruit him as they think he might be a candidate who is sacked by seeing the organisation name in the resume and they are not ready to recruit him as they think the company has sacked him as he is not much productive. The state of my friend is, he is now diagnosed with heart problem and he is just 32 year old and the only reason is stress. His wife and two small children are solely dependent on his income.

    Shouldn't the companies think about employees too and offer him a job.
  • #614594
    Sad situation. MNCs normally get in to the process of downsizing when they are incurring loss. That is usual, because they only think about their profits and not the employees. But like the author said at least they can stay away from spreading the news in channels and media. It will directly affect the employees. Hardly any company will be ready to take an employee knowing that he was sacked.

    Hope your friend gets a job soon. Prayers are with him.

    Regards
    Chitra
    "Do not give up, things might not favour you always"

  • #614601
    MNCs, big corporate in any sector of service is high on talk and low on the heart and human values. They milk the cash cow till it bleeds and takes off.The top cream takes huge packages and fleeces the rest of the crowd. In many states, rules are made to cap the cost in the healthcare sector.Why not cap the salary of the top big shots in each company and the astronomical bonuses that they take home. The IT sector is like the dotcom bubble bursting in slow motion. Everyone were happy with huge gross packages.Nobody gave a thought to what if? scenario. Much of this was built on the revenue and work from overseas and things were rosy but now the very countries that were needing us are facing hard times.

    I raised a thread recently, too much of unregulated growth is bad for any form of service. MNCs are here to make their money irrespective of how it comes or who suffers. The clout these MNCs have in the government circles is huge. Even the government meekly doles out packages after packages in the form of ease to trade perks but does not have the authority to stand up for the individual employees who face the axe.

  • #614710
    MNC's do this especially the service based companies, again when they say four months salary it's not the complete salary, it's only the basic four months salary which hardly amounts to a months or two collectively, which you will get after 45 days in some companies.

    We used to discuss this, why to hire when they are firing employees, at least there should be a freeze in recruiting more employees so that existing employees can be retained in the company. One of the steps taken by few MNC's were, they reduced the salaries of senior most employees and the perks they received which was acceptable to them as well the management.

  • #614849
    Either it is an MNC or an Indian company or a small company or a big company, every organisation is doing a business. In business, there are no kind hearts. Business is to make the profit. All the employees will serve the company and they will be paid for that. They purchase our time. So we can't expect them to retain us
    and incur losses. So we should also be on our lookout. Many people talk about loyalty to the company. As long as we take salary we have to work sincerely for the company but not at the cost of our family and life. Tata Teleservices, a Tata company, is also incurred losses and they have also removed many people who worked with then for many years. It will be like this only in the coming years. So the employees should always think about their future and should make correct moves and change the jobs. Otherwise, all will end up like this. This a hire and fire era in private industries. No security for your employment.

    drrao
    always confident

  • #614850
    IT jobs has become more risk oriented. They are no more secure jobs, but highly insecure but good paid jobs. The business of IT companies are from the overseas and if that market is down, the orders wont be coming and thus they are bound to say good bye to some unwanted employees. Today only my sister daughter who is working with branded IT company has left for job early in the morning . Because the client from overseas is coming to see the work procedure of his tasks and commitments. Grand welcome has been planned with Rangoli and having Indian lighting at the entrance to impress culture wise. Though her company is working good and the salaries are also regular, she is fearing very much that if they loose even one client, the orders are going to be in crores which the company cannot afford to loose and the employees stands chance to be shunted out.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #614867
    It is really a very sad situation when the potential of any employee of IT sector is ignored and his past service for which he put all his effort to do the best goes in vain due to wrong decision of the corporate - office. If we could see the same in a different angle, such harse decision of MNC demoralises the sentiments of enthusiastic employees. This irresponsible act may dampen the spirit of the employees causing overhaul poor performance of the organisation. Indeed it is an ironical situation and no feasible solution is seen at this moment.
    We hope the employees should devise their own ways to tackle such grim situation, it would be better for them to recognise their strength and in the event of harse sacking, they can go in coaching institutes to teach the students of schools preparing for the competitive examinations for engineering colleges or choose any profession for which they have true inclination. Repentance pays nothing.

  • #614869
    Some are left with no option, few are hired by other organization with lesser pays. Still few change career in other fields to keep and sustain their family.

    Still few slowly drift into depression as its a sudden shock, all their years of the hard work goes in vain just because one person comes and says to you have 24hrs to resign else you will be terminated. It's a sorry state but still, people risk getting into this career.

  • #615761
    [Response removed by Admin. Read forum policies.]


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