INDIA’S LARGEST EVER TERMINATION IN A SINGLE GO- ENGINEERING FIRM L&T..

INDIA’S LARGEST EVER TERMINATION IN A SINGLE GO- ENGINEERING FIRM L&T LAYSOFF 14,000 EMPLOYEES

Larsen & Toubro (L&T), which is India’s largest engineering firm has decided to terminate 14,000 employees in a single go. This is being described as India’s largest ever layoff.L&T is a 78 year old organisation.

14,000 employees represent 11.2% of total workforce of L&T in India.

L&T’s total assets as on March, 2016 was $34 billion, and it churned out revenues worth $15 billion in last financial year. And it generated quite a handsome profit as well. During first half of FY-2017, L&T generated revenues worth Rs 46,885 crore, which is 8.6% more compared to last year. At the same time profits increased to Rs 2044 crore, compared to Rs 1197 crore a year back.

If the company was in green, then why was the decision to termination 14,000 employees was taken?

 Layoff Reason : Attempt To ‘Right Size’ Its Strength

As per the top management of L&T, the massive layoffs is being done to bring its workforce under the ‘right size’, and to remove thousands of ‘redundant’ jobs. Although it hasn’t yet been shared, but automation can be a strong reason for the mass layoffs.

L&T’s Chief Financial Officer R Shankar Raman tried to justify the terminations of 14,000 employees, as he said, “The company has taken a lot of initiative to right size staffing in various businesses. The digitisation and productivity enhancement initiatives taken by us boiled down to redundancies of roles and we have been able to shed as a group 14,000 in the six months to September..’ Courtesy: PTI