Satyam Computer Services (SAY) has more than 10,000 staff above what it needs, according to Vineet Navyar, the CEO of Tech Mahindra, which won the auction to buy the fraud-stricken IT outsourcing company.
According to Reuters, Nayer said Friday that it would be better to reduce staff significantly than to risk putting all 40,000 of Satyam’s workers out of jobs.
“I think the future is great but there will have to be a few sacrifices in terms of compensation, in terms of a large number of things… Some form of least painful way of reduction in staff is an option which will have to be looked at,” he said.
The Reuters story added, though, that Kiran Karnik, chairman of the board appointed by the government to salvage the company, said Satyam was looking at cost-control steps including wage cuts but not layoffs.
“Without a doubt, revenue is on a downward slope just now. We are hoping to pick up, but the pick-up won’t happen immediately,” Karnik told reporters. “There is stress on the company’s bottom line and very clearly some definite and fairly strong actions will have to be taken.”