Mastek acts on global crisis; plans job cuts

Posted By: Staff
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Mumbai, Feb 2: Information technology firm Mastek on Monday, Feb 2 said that the company is offering voluntary separation and 'forced breaks' to its employees, and is also aggressively seeking to cut down on its staff benefit costs.

“Mastek had experienced a demand slowdown last quarter... the slowdown, in combination with reduced attrition level, has led to an excess bench buildup of around 425 professionals, a majority of them are trainees," the company said in a regulatory filing.

In order to maintain its profitability, the company is creating a 'virtual bench', where an employee could remain for up to 12 months and would be given a monthly allowance. "These employees are also being offered the option to leave the company immediately with a compensation package if they chose to do so," the company added.

"For people on the virtual bench, various international departments are working on plans to provide training and development programs to make this 'forced break' as valuable as possible." Mastek said it has also been taking various steps to reduce its operating expenses over the past few months and "plans to aggressively take additional steps that include reductions in travel expenditure and scaling down of other spending wherever possible."

OneIndia News (With inputs from Agencies)

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