Due to the uncertain business environment, information technology firms are now laying off lakhs of employees worldwide. The layoffs are happening on the basis of rightsizing the workforce, lack of new projects, and non-performance. The pressure is immensely mounting on the enterprises, and it is on a lookout for some relief. Due to the automation and growth of other related technologies, IT companies all around the globe have already reduced the headcount significantly in the past two years. Due to the current pandemic situation, things have escalated quickly, and new challenges have come up for these firms.
To reshape the structure of its business, IBM has dismissed almost 2000 employees in a mass layoff. Many employees on the bench were also laid off by Cognizant, and also the company has one of the largest employee hubs in India. IT is a norm in IT companies to have few employees on the bench, and they are termed as non-billable resources. Companies usually maintain a small amount of bench resource to kick start new projects immediately. Analysts predict that the layoffs are inevitable, and the bench resources will the first among others to be let go off. IT companies are facing immense backlash due to their legacy business models, so massive changes are expected in the coming months.