Thursday, 24th August, 2017

Snippets

IT company found ideal cost optimization model, gives 200 Cr to CEO & pink slips to employees

10, Jul 2017 By dasu

Pune: After trying for years, an Indian IT company has cracked the best possible ‘cost optimization’ solution to tide over challenging economic environment that the industry is facing now.

Restructuring-or-layoff_Cover_Yourstory

Though full details are not available to us, the main principle behind this works like this. Ultra-high compensation of top management, in some cases total compensation goes beyond 200 crores which needs to be ‘adjusted’ by giving termination notice to ‘necessary amount’ of employees.

“I will not categorize this ‘cost optimization’ model as a new ‘invention’, it falls under the bracket ‘discovery’. Because this is something that was being followed for years, but it was never got ‘discovered’ for large public till they came across the leaked audio clip on internet”, said Manmohan Pai (name changed on request) who retired as HR head of a top Indian IT company.

While sharing with us on his years of experience about such practices being followed in the industry, Mr Pai said, “Just tell me where the industry will find a suitable CEO or CTO to work for them if the person at the helm quits. Even if they get one, do you think he will work at a lesser package to the outgoing one. We need to understand it’s a market driven package and the ‘value’ they bring to the table”.

“Getting rid of employees is not that difficult. If you ask them to go, they have to go, what other options they have. I always recommend Industry people to be little humane, at least give the four hours’ time.  Two hours of notice is not sufficient for someone to arrange all his stuff in his office drawer and copy his personal stuff to a hard disk”, said Mr. Pai.

Mr. Pai added, “I like the way top management come forward and apologize when one of case gets leaked out where ‘core values’ of the company was not followed. It shows our Industry is maturing, top management ready to apologize when something goes viral in social media. Am sure they must be putting proper infrastructure in place so that these things are never recorded or leaked out”.

In the meanwhile, the employee who was hit by cost optimization was found requesting for a lift on his way to home.