Assocham says 25% job cuts in key industrial segments post Diwali

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New Delhi, Oct 29 (UNI) After adopting various cost cutting measure to sail through the global economic slow down, India Inc will now move on to lay off its workforce by about 25 per cent, said an Assocham study.

The study titled 'Jobs Scenario Post-Diwali', further said the announcement for this job cut will be announced in next 10 days in sectors comprising steel, cement, ITeS/BPO, financial and brokerage services, construction, real estate and aviation.

Assocham President Sajjan Jindal said most of the corporates had desired to start lay off in a phased manner much before Diwali but these were advised to defer their restructuring after the festival on human ground reasons.

Employers have no other alternatives as part of their corporate strategy to cope with prevailing negativity for sustaining their operations with squeezed margins after drastic cost cutting measures, the study said.

The other alternative will be to curtail perks and perquisites of middle and senior management levels as most of CEOs have agreed to accept substantial slashing in their packages.

Meanwhile, business houses have stopped requisitioning their human resource requirement to placement agencies in view of current meltdown.

The study suggests that negative sentiments can be turned into opportunity if the Reserve Bank of India (RBI) decreases the interest rates by at least three per cent.


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