Engineering major Larsen & Toubro (L&T) has laid off 14,000 employees across businesses during April—September period.
“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,” company’s Chief Financial Officer R Shankar Raman said.
“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 said.
“We have adopted various initiatives to be competitive. We have tried to introduce digitisation whenever necessary, so in case if we needed 10 people for a job we tried to bring it down to five. The layoffs have been done in businesses which are moving slow due to various reasons, including delayed execution, among others,” Mr. Raman said.
“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,” company’s Deputy Managing Director and President S N Subrahmanyan said. “This laying off was a one-time move and not a target that we are running behind,” he further added.
In the first half of FY17, the company’s revenue increased 8.6 per cent to Rs 46,885 crore. Profits rose to Rs 2,044 crore from Rs 1,197 crore a year ago.