L&T lays off 14,000 employees from its workforce in biggest downsizing
NewDelhi,Nov23:In one of the biggest layoffs the country has witnessed, engineering services firm Larsen & Toubro has let go of 14,000 employees. The exercise is the company’s bid to “right size” its workforce amid a business slowdown, The Economic Times reported Wednesday. The workforce-retrenchment exercise, done as part of digitisation and productivity enhancement initiative, was carried out over six months to September. L&T Chief Financial Officer R Shankar Raman said the move was a “correction” and shouldn’t be take as a sequential measure.
Raman made this comment at a media conference held on Tuesday to announce Q2FY17 financial earnings for the group’s flagship company Larsen and Toubro Ltd. (L&T).
Adding that the job cuts were not concentrated in a specific business, Raman said that they were spread across sectors. However, the financial services sector had seen the maximum layoffs.
We’ve got to look at it linearly, to see how to move up the value chain. Certain employees that were relevant at some point in time are not relevant anymore, the technology is changing. We have put many of our works into shared services and we have brought in back-up services for many of our works. And we are moving into some amount of automation and digital for some of our common services. The verticalization process has resulted in a different way of looking at processes. There are certain low performers which we were taking along and we had to take a relook at it because in a competitive world we need to be agile and smart and move forward.
SN Subrahmanyan, Deputy Managing Director and President, L&T