IT companies may see more layoffs as sector struggles amid COVID-19: Report

With projects scarce, employees without active project assignments would be the first out the door, analysts say.

Moneycontrol News

July 13, 2020 / 21:25 IST

A string of layoffs by information technology (IT) companies is reportedly ongoing – globally and in India, as the sector struggles with lack of projects and a comparatively excessive workforce during the current COVID-19 pandemic.

Besides the new economic volatility, the sector has over the past two years progressively shifted towards automation and related technologies, making companies reduce employee headcount. The coronavirus pandemic it seems has only accelerated the process, as per a Mint report.

Globally, International Business Machines Corporation or IBM is firing 2,000 employees, including an estimated 100 or so from India – which accounts for 350,000 of its employee strength, it added.

The company did not respond to queries, the paper said.

COVID-19 Vaccine

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