IT COMPANIES MAY LAYOFF 30,000-40,000 MID-LEVEL EMPLOYEES - FORMER INFOSYS CEO

IT industry's vetaran, former CEO of Infosys, TV Mohandas Pai said on Monday that IT companies may layoff 30,000 to 40,000 employees as growth slows down, reports Economic Times.

He termed these shedding process as once-in-five-years normal phenomenon with maturing of industry.

"As in all sectors in the West, in India too when a sector matures so many people will be there in the middle level who will not be adding value to the salary they get," he told PTI.

He said that when companies are growing, promotions are good and when the growth slows down, people getting more salaries will be shed to reset the pyramids periodically. He said that it is going to happen over and over every five years.

"Nobody is entitled to a fat salary and high-paying job unless you perform, right? You have to deliver value" he said. When asked about the number of people who will lose their jobs, he said "All across industry, may be 30,000 to 40,000 in a year..." But he also said that 80% of the people losing their jobs can find other opportunities provided they are specialists.