EPAM, an IT services provider which has more than 4000 employees in India has asked 100 employees to resign. Additionally, the Company has also revoked the offer letters of new joinees.
Those who have been forced to resign were sitting on the bench and were not part of any active project in the Company.
As reported by ET, the HR manager has explained to the outgoing employees that the Company has overhired talent and has misjudged the demand forecast of talent in the firm. That is why, this step of forceful resignation had to be resorted to. The reports also revealed that the Company is not in a position to fund the onboarding needs of the future.
The employees were given two options — Either to accept an amount equivalent to three months’ salary and exit immediately or serve a two-month notice period in which their resignation may be revoked if they land a project within that period.
The layoffs have taken place over the last few weeks with the maximum people being impacted at EPAM Anywhere, and a handful in EPAM Systems.
As per sources quoted by the media, EPAM had rehired the affected employees working in Ukraine — who had shifted their base to nearby countries such as Poland and Romania —which resulted in a fall in demand for resources.
As per media reports, with the US witnessing a recession, the American banks have cut their spending on IT services. This, in turn, is impacting the IT services sector in India. Many tech global giants such as Microsoft, Google and Meta have also slowed down their hiring activity.