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“This is factually incorrect” says IBM on rumor of firing 5000 employees.

Tech Giant IBM cleared off the air on Sacking rumors saying they are not firing 5000 employees and the media reports of it are “factually incorrect”.

Business Standard reported on tuesday that the giant Tech Company, IBM is laying of 5000 of its employees. Coming into the same page as IT giants Infosys, Wipro and TCS.

“This is factually incorrect. We are not going to comment further on rumours and speculation. Re-skilling and rebalancing is an ongoing process as we accelerate the benefits of cognitive and cloud technologies for clients around the world” said a spokesperson of IBM in an email.

IBM India  has an estimated employee strength of around 1.5 lakh and this time around the technology major is likely to be selective in identifying the non-performers and was looking at a target of “achieving 100 per cent utilisation” across all projects with a shift in business and increased demand for digital-technology based services, a person familiar with the development said.

 

“If you are on the Bench at IBM, you are in trouble. While net addition has come down, the company is trimming its workforce gradually.”said Kris Lakshmikanth, the MD of a recruitment agency, Head Hunters India.

Supporting “workforce realignment”, NASSCOM, the industry body stated “Skilling and workforce realignment are essential to remain competitive in international markets. It needs to be appreciated that such workforce realignment is a normal part of the internal process of companies based on their own operational imperatives,”

“As part of annual appraisals, they may not be renewing the contract of some people but it is absolutely incorrect to assume that suddenly this year a large number of jobs are being shed,” Sundararajan said.

Stating that the Indian IT sector will grow at 8-9 per cent this year, the IT Secretary exuded confidence that the industry will continue to hire in large numbers as new technologies like digital payments, cyber security, big data and cloud gain traction.

“Any report that is interpreting this change as a large scale loss of jobs in the IT sector would be factually misleading and incorrect,” she said.

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