IT layoffs loom, union gears for battle

Fears of impending layoffs in the information technology industry have prompted a leading trade union to warn the companies against any wanton sackings and appeal to the government to protect the workers’ rights.

The move by the Karnataka State IT/ITeS Employees Union (Kitu) comes amid a series of media reports about downsizing plans in the sector and oblique hints — and even some open admissions — from the companies themselves.

Cognizant, the country’s second-biggest IT services company that employs 200,000 people in India, had in its earnings call last week announced it would lay off 5,000-7,000 employees globally from the mid-level to senior level to bring down costs.