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L&T lays off 14,000 employees in its ‘strategic decision’

By Newsd
Updated on :

Larsen & Toubro (L&T) laid off 14,000 employees across businesses during April-September this year. The company called it a “strategic decision.”

“It was a strategic decision that if a business is not in good shape, we are trying to resize it. If there is time to get the business back to normality, it is important to reduce the under-recoveries. So, the jobs that we are finding redundant, we are allowing people to move on,” said company’s Chief Financial Officer R Shankar Raman.

“We have an employee base of 1.2 lakh across various businesses, and we have laid off 14,000 people during the first half of fiscal 2017,” he added.

However, the details of the different verticals in which the layoffs happened are not known.  The firm had tried to look at its businesses in a different way to remain competitive. It adopted a variety of initiatives and introduced digitisation whenever required.  Therefore, if it required 10 people for a job, the company said it tried to bring it down to five.

The layoffs have been done in divisions, which are moving slow because of different reasons, including late execution, said Mr. Raman.

“There are certain low performers [businesses] and we have to re-look at them. In the competitive world, you need to be agile and smart and move forward,” said company’s Deputy Managing Director and President S N Subrahmanyan.

However, he mentioned this was a one-time decision and not a target. “This laying off was a one-time move and not a target that we are running behind,” he said.

Lately, L&T announced a five-year plan to increase revenues to Rs. 2 lakh crore. The strategy identifies some non-performing businesses that the company is now re-considering.

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