HCL Tech has laid off over 300 employees as part of its budget-cutting exercise. No official or public announcement has been made about these layoffs, but Money Control reported that employees working on Microsoft projects in India, Philippines and Guatemala have been impacted the most.
Those asked to leave will be paid a severance package, details of which are yet not known. The laid off employees’ last working day is expected to be 30 September.
The layoffs, as per media reports, were announced during a town hall. The Company, however, maintains that its tech and services units have been posting growth and continue to grow rapidly.
As per information received by media from sources close to the development, Microsoft had raised concerns about the work quality. The laid off staff were involved in projects that monitored, curated and edited content for Microsoft’s news platform, MSN, from India, Europe, the US as well as other parts of the world. The global news-monitoring process was reportedly automated recently.
A couple of weeks ago, the Indian tech multinational had overtaken Wipro to become the country’s third-largest IT company in terms of revenue and market capitalisation. While Wipro’s market cap was Rs 2.2 lakh crore, HCL’s was over 2.5 lakh crore.
In Q4, the Company reportedly signed and took on about 17 new projects and added two new customers in the $100-million customer category.