Tuesday, February 24, 2009

Slowdown and the fear of loosing your job

Last few weeks have been discomforting. Got news from my previous company, that some 500 people were asked to leave, on grounds of non performance and cost cutting under slowdown... some people had been hired less than 12 months ago. The aftermath saw about 10 more people quitting almost immediately, the reason 'I will quit before I am asked to leave'. over the past one month had heard atleast 20 other stories of people being asked to leave from various media companie, TOI, HT, IT, Outlook, Reliance Retail, Subhiksha and a few more...
Some of the companies were actually doing quite well or so it seemed, and then it makes you wonder, whether this is happening because of the slowdown or are the companies firing under cover to undo some of their past sins.
A company I know, showed about 30 crores of loss in the last quarter. the official news was that the loss was on account of firing some 300 people and the pink slips cost them that amount. The fact was that they had to write off about 30 crores of accumlated bad debts over the past 5 years. some retail companies again fired a lot of people, maybe because of their over exposure to taking risks in rampantly opening retail outlets in every nook and corner they could find to have the first movers advantage rather than actually studying the viability of the outlet in that area.
But whatever the reason for firing, there is a sense on uncertainty and insecurity with employees.

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