Job cuts: More layoffs by top companies, here is why

Employment figures of leading listed companies, saw significant reduction of their workforce in the 2016-17, according to Indian Express report.

The 121 listed companies reveals net hiring in these companies have come down from 742,012 to 730,694. However, it excluded IT and financial services sector, the report says.

The data indicates that the decline of 11,318 employees span across sectors such as metal, power, capital goods, construction and FMCG among others.

Out of 121, the data available for 107 companies shows a net aggregate decline in headcount for the second consecutive year.

While employee numbers stood at 684,452 at the end of March 2015, it came down to 677,296 at the end of March 2016. Subsequently, it was further down to 669,784 at the end of March 2017, accoridng to IE report.

Several companies in metal, capital goods, retail, power and cement saw a net decline in their employee numbers.

The biggest decline in numbers was seen by Firstsource Solutions, a BPO owned by the RP-Sanjiv Goenka Group, that saw its employee strength go down by 7,552 during the year from 23,886 at the end of March 2016 to 16,334 at the end of the March 2017. Apollo Tyres and Heritage Foods were next in line, with the workforce numbers going down by 4,272 and 2,657 respectively.

Of the 121 companies in the list, while 49 saw a net decline in their employee numbers at the end of the financial year 2016-17, 68 saw some addition to their net employee strength. Four companies witnessed no change in net numbers. The analysis is based on data sourced from Prowess IQ, CMIE.4,272 and 2,657 respectively.

Experts opine that this point to a trend is a matter of concern. A net aggregate decline in employee strength of the biggest companies in the country reflects upon the lack of expansion plan and near-term growth expectation of these companies.

OneIndia News