The Economic Times
India Inc may see more job cuts as efficiency levels drop
By Ranjit Shinde and Jessica Mehroin Irani, ET Bureau
MUMBAI: Though the last week’s retrenchment saga at Jet Airways saw a happy ending, the ghost of job losses still haunts India Inc.
An ETIG study of the workforce efficiency of Indian companies indicates that corporate India is witnessing reduction in per employee revenue and net profit. This may prompt some more organisations to take up job cuts to maintain productivity.
A study based on the data of 700 big and small companies that reported annual employee data reveals that two out of seven companies or about 27% of the companies reported lower revenue per employee in FY08 compared to the previous year. As many as 39% companies in the sample saw a drop in net profit (PAT) per head by similar comparison.