Larsen & Toubro, one of the India’s biggest engineering firms, has layed off 14,000 employees, which makes 11.2% of its total workforce. This is its one of the biggest corporate cutback exercises in recent times.
The IT giant in response to this mentioned that this move was an attempt towards building a right size of its strength to encounter the slowdown in the business. Digitization and automation of operations also caused redundancies and thus downsizing.
Chief Financial Officer R Shankar Raman in a statement mentioned this move cannot be taken as a sequential activity. The conglomerate has currently faced many challenges from like deferring of orders from customers, falling price of oil having an impact on the middle-eastern markets.
He also added “The Company has taken a lot of initiative to right size staffing in various businesses. The digitization and productivity enhancement initiatives taken by us boiled down to redundancies of roles and we have been able to shed as a group 14,000 in the six months to September,”
In April this year L&T Finance Holding, the nonbanking finance company of the tech major Larsen & Toubro, has posed over 550 employees to quit keeping in mind the high cost involved and the changing environment of the business.Next in July Larsen & Toubro was reported to have a high attrition rate of 18 percent.
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Madhurima Goyal, From ITvoir News Desk