In September, the senior management of a financial services company debated a serious issue: Over spreadsheets and power point presentations projected on a giant screen, five people discussed whether to downsize a division that was eating into the company’s profitability or close the entire division for good.
Early October, with the Indian and global stock markets in a tizzy and the shadow of the Euro Zone debt crisis looming over the world, this Bangalore-based company hurriedly summoned some 60 odd employees of this division for an ‘urgent meeting.’
By the end of the day all 60 employees returned home with pink slips and the promise of a decent severance package — a part of their contract — in their bags.
“I couldn’t figure out why they fired me,” says 22-year-old Namit Singha (name changed on request), an economics graduate from Mumbai University who figured in the list of people who lost their jobs.
“The management didn’t convey if our jobs were taken away because of cost cutting or a downsizing of the workforce. What I heard from others in the company was that our division was not making money,” he adds.