Kyndryl, a global company that provides infrastructure services to organisations across different industries, recently announced that it would be laying off some of its employees worldwide to become more efficient and competitive. While the exact number of employees being laid off in India is currently unknown, it is estimated that around half of Kyndryl’s global workforce is based here.
According to a company spokesperson, the layoffs are part of Kyndryl’s ongoing transformation efforts to streamline and simplify its processes and systems. These efforts are aimed at increasing efficiency, reducing costs, and improving the company’s overall competitiveness. The spokesperson also noted that the number of employees being laid off globally is relatively small, but it is still a cause for concern among employees and stakeholders.
Sources have reported that the severance pay offered to employees in India is lower than what their global counterparts receive. This has caused some employees to question the fairness of the layoffs and the company’s commitment to its employees in India. However, the company has not responded to these allegations or disclosed any information regarding the severance pay.
The majority of the layoffs are said to have taken place in non-core roles such as marketing, administration, and HR. This suggests that the company is looking to reduce costs by cutting back on support functions rather than core business functions. While this strategy may help the company become more efficient in the short term, it could potentially have long-term implications on the company’s ability to deliver quality services to its clients.
Kyndryl reported a year-over-year decline in revenues of 6 per cent for the quarter ending December 31, 2022, along with pre-tax and net losses. Despite this, the company remains confident that the value it is creating for its customers will benefit its bottom line in the long run. Chairman and CEO Martin Schroeter stated that he is confident that the company’s bottom line will benefit from the value they’re creating for their customers while better serving their mission-critical needs.
Overall, the layoffs at Kyndryl highlight the challenges that many companies are facing in today’s competitive business environment.
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