MUMBAI, November 24: Facing with economic challenges, engineering major firm Larsen & Toubro (L&T) has fired 14,000 employees, from the workforce . This constitutes of around 11.2 % of its total workforce.
“The company has taken a lot of initiative to right size staffing in various businesses. The digitization 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,” Chief Financial Officer R Shankar Raman said. Raman said the lay-off is a "correction”, adding the move should not be viewed as a sequential event.
As per reports, the company has been dealing with many challenges with customers deferring orders and falling oil prices contributing to a sharp slowdown in the Middle-east, one of its biggest bets.
The $16-billion diversified conglomerate said the step was an attempt to “right size” its strength in the face of business slowdown. Digitization of operations also caused redundancies that led to downsizing.
Raman said that the workforce reduction is an effort and hard work on L&T’s portion to stuck on orders from the governing administration, which have picked up pace as in comparison to non-public kinds. This shift from the organization is also an effort and hard work centered in direction of staying active, suitable and price-aggressive in today’s fast evolving economic scenario. The organization wasn’t desire in carrying ahead the burden of employees incompetent in budding and other currently universal technologies, he added.
"If we believe that some business will take some time to get back to normalcy, it is important that we reduce under-recoveries. We are redefining roles and jobs which are redundant; we are allowing people to move on. It is across businesses,” Raman told ET, adding “financial services has defocused on certain lines of businesses and has let go a lot of people. Same is the case in minerals and metals.”
L&T has a five-year strategic plan in place and aims at touching revenue to Rs 2 lakh crore. The firm expects the economic environment to remain challenging in coming months though a pickup in government orders is making up for private sector slack.