IT layoffs: Pessimism, fear grips employees; mid-level staff most vulnerable

A survey of 11,282 IT employees by the Economic Times (ET) has shown that more than three-fourths of the respondents were worried of the turmoil hitting mid-level workers, typically those with more than 10 years of experience.

Another interesting fact that emerged from the survey was the threat from younger employees to mid-level employees, the other two being the problems the industry is facing, and digital technology.

These employees are also referred to as "EMI Group" given that many of them pay equated monthly instalments (EMIs) on home and vehicle loans.

The responses revealed an overall sense of gloom, with 62 percent of them saying that the job opportunities for them would keep shrinking, while 80 percent of them acknowledged that re-skilling is the key to improve job prospects.

The survey conducted by ET Online is in line with an assertion made by the head of a recruitment firm, The Head Hunters, a few days ago.

"Even if they are willing to take a salary cut, not many will be willing to hire them," Kris Lakshmikanth, chairman and managing director of The Head Hunters, told the International Business Times, India edition, on May 15, 2017. Lakshmikanth had estimated that six lakh jobs would face the axe over the next three years.

The survey also shed light on whether large-scale job cuts are the norm of the day, even if companies deny; 49 percent of the respondents believed that layoffs are being "talked about" while 40 percent had a differing view.

The threat to jobs has overshadowed talks of annual salary hike that dominates news around this period of the year. 

Nandita Gurjar, former HR head and senior vice-president of Infosys, told the International Business Times that it will be a trade-off between retaining jobs and salary hike. "But one thing is sure. it (quantum of hike) won't be the same as in earlier years," she said.

The situation is grimmer for freshers, according to her. "I am more worried about them. They would have education loans...suddenly they would realise that their IT dreams are being shattered," she said on the sidelines of an event in Bengaluru last month.