Yet another workforce reduction has been announced by another technology company. And this time its the turn of Sun Microsystems.
Sun Microsystem has announced that around 15-18 % of its workforce will be reduced and thereby job cuts for around 6,000 of its employees. They have also announced that they are restructuring their software operations.
The situation in the major companies in the middle of this credit crunch and financial crisis seems to be a very desperate move to cut spending in view of diminished projects and sales. This is causing panic among the other employees making them fear that they may be next in the list of job cuts.
The condition is getting worse each day as one by one many of the companies are announcing job layoffs and decreased profits if not in the verge of bankruptcy. The condition is still worse in the case of those looking for a job or waiting to join in one of these companies.
If the current situation does not improve in the forth coming months, I think many countries may face unemployment on a large scale.
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As of today, a lot of young engineers have been recruited by the major IT firms but so far only a few students who studied in one of the top colleges have actually joined the respective organizations. The others have been simply made to wait for them to call. Its already been 5 months and it is predicted to last for a few more months at least.
Some attribute this situation as due to the US recession and the IT firms major dependence on US. It may be also due to the inability to forecast the events by these firms. But many say this is due to the ruthless increase in head count performed by the companies by recruiting in bulk well in advance of almost a year. Following this, these companies may follow a demand-supply process in recruiting people i.e. recruiting people only when there is a job vacancy/demand for them and also in the required minimum number of recruited candidates.
The situation is almost equal in all IT majors like Infosys, Wipro, TCS, CTS, Sathyam, HCL, Caritor, etc. They have called only people from the top educational institutes as of now. The fate of others or when they will be called is little known. The situation is worse in the cases of Sathyam, Caritor and CTS where only a handful of people have been called and there is no proper response or communication from the respective HRs about the joining dates.
While companies like TCS and Wipro have been communicative about the DOJs, some others like Infosys and HCL have been giving online training till the recruited candidates are called. Very little is known about the other firms with no proper communication from their sides which is what the recruited candidates are expecting at the least.
