Time of panic in the high-end job sector is far from being over. Post-Diwali
corporate India may resort to more job cuts to meet the challenges of the tough
time caused by the global financial turmoil, warns Associated Chambers of
Commerce and Industry of India (ASSOCHAM).
According to its latest report, Indian firms are likely to lay off 25 to 30
percent of the work force in the next 10 days and the most affect segments would
be IT-enabled services (ITeS/BPO), steel, cement, construction, real estate,
aviation, and financial services sectors.
"HR heads of majority of steel, cement, ITeS/BPO, financial and brokerage
services including construction, real estate and aviation have drawn up
conclusive plans to curtail their workforce by 25 to 30 percent, announcements
for which is likely in next 10 days or so," said Sajjan Jindal, President,
ASSOCHAM while releasing the 'Job scenario post-Diwali' analysis of the
organization.
"Employers have no other alternatives as part of their corporate strategy...
for sustaining their operations with squeezed margins (even) after drastic cost
cutting measures," the ASSOCHAM statement said.
The chamber said that the negative sentiments in the seven sectors could be
turned into opportunities provided the Reserve Bank discontinues with its tight
monetary policy and cut the interests rates by at least three per cent.
Slamming the report, Finance Minister P Chidambaram said taht Indian economy
would growat minimum seven percent and that a lower growth rate no way indicated
destructive employment situation.