Why Silent Layoffs Here?

By Jayakishore Bayadi

What I feel a major discrepancy in the corporate India, when compared to the corporate America is the lack of audacity to “Accept the bitter facts”. In the west every thing is open, may it be economy, society, life…or anything. The practice is being seen in the times of recession as well. That’s why the American corporations openly and gallantly state even if they are at the verge of sinking or laying off people or any thing that’s bad is happening to their establishment.

However, it’s not true with regard to corporate India. Many were not at all aware that layoffs are happening in Bangalore as well, till it reached its peak in recent days. According to a news source, several IT/ITes companies are trimmed down on an average of 15 percent of their workforce. Hardly very few companies are recruiting freshers as of now. Over 5000 people have been affected due to U.S downfall driven recession in Bangalore alone, what a source said is to be believed.

That’s what the difference. If you read Forbes or Fortune Magazine nowadays you’ll get a constant update on what’s happening in the U.S economy continuously. Also, there are regular updates on layoffs as well! Sadly, I believe Indian media has failed give a clear picture of what’s really happening in the industry, except a few layoff coverages, that too of from the U.S companies. Of course, it’s not only the fault from the media guys. It’s just that, corporate India itself is hesitant to disclose the reality. In fact, media has tried its best at least to bring out the trends to peoples’ notice, though. However, corporate India should learn that openness is more effective to avoid public disconnect rather than hiding their failures, insecurities…and of course, so called brand image! And in fact, such a move can initiate public debates on what to do and not to do. Recent Citibank episode could be the perfect instance to quote here.

About five months ago, when I was talking to a top Satyam official in a press conference, he told global slowdown has got a silver lining, as this could be an opportunity well. But today nobody is talking about silver linings! The same industry leaders say: “Nobody knows what’s really happening. Nobody has the clue that when this mayhem will end?” Plus, now they are started saying openly that worst is yet to come! Alongside, many are still chanting like things will improve in next quarter…or in the end of 2009 and so on. It seems that when situation becomes hopeless, when there is nothing to hide…you cannot find better answers than these!

The lesson is crystal clear. At tough times like these, leaders should work towards instilling confidence in the industry by being bold and straight rather than just beating around the bush. That will really help.

When Will it End Man?

By Jayakishore Bayadi

It reminds me of my struggling days again. Perhaps, this is even worse than that. When the dark clouds of dotcom bust brooded over Indian IT sector, which affected whole tech job market also in 2001, it created a horrendous fear inside young freshers like us about whether we’ll get a good job or not. Those were the days, when we few friends together walking in the streets of Peenya Industrial area holding multiple copies of our resume and dropping it to every company we spotted and hoped—I may get call from this firm. But it never happened.

Seven winters passed since then. Eventually, slowdown had come down and next few years were real cheerful days for technology sector, which altered whole outlook of Bangalore. Indeed there was a paradigm shift in the way Banaglore lived! For me life has been roller coaster ride all these days. Meanwhile I diverted my career path from technology to media to become a good journalist, especially in developmental journalism or in technology space. I have achieved it. I am a pretty good technology journalist today. It’s going great!

Cut to ongoing recession stuff. All you know is that dooms days are again. Yet another slowdown is on. After effects and miseries can be seen across the globe. In Bangalore alone over 2000 people have lost their jobs! There are lakhs of freshers just out of college in desperation to get a job! Some of most respected companies are collecting money to offer a job! Some companies asking campus recruits to wait for some more time or do a BPO job, for which they are actually not at all recruited! For those who working, appraisals are on hold! Pink slip is hot topic for radio jockeys here! What is painful is that these numbers (pink slips) just keep getting scarier. Just in is that in the U.S, Sun Microsystems is laying off up to 6,000. For Pepsi Bottling it's 3,150. And that Citigroup figure still sends chills down your spine. “So there it seems like no one is safe!” writes Beth Kowitt, a Senior Writer at Fortune Magazine. (Don’t worry now, it’s the U.S figures)

That’s one part. This U.S. recession driven “Bangalore slowdown mayhem” has impacted all. I can recollect pain points of our Malnad districts of Karnataka went through, when areca prices slumped deeply during 2000-2004 period. However, Farmers’ plight is still on but not catching the attention of media, as it has become a banal thing to write about. Being in Bangalore for about 10 years, I can clearly spot the similar trend here as well. Businesses are down heavily. Real estate rates come down profoundly with 10-15 percent drop in the house prices. What is consoling is House rents have stopped going up. Before, it costed about 10-11K per month for a 2 BHK house in Domlur, now such houses are available for around 8K!

What is different this time is that the slowdown is talk of town nowadays. Even first standard kid knows about this today. At this point in time what reminds me is a mythological story of Samudhra manthana. Which is the story of churning of the milk ocean for Amrita – Nectar. Mount Mandaranchal was used as the dasher (churning tool), and Vasuki, the king of serpents, became the churning rope. The gods held the head of the snake, while the demons (Asuras) held its tail, and they pulled on it alternately causing the mountain to rotate, which in turn churned the ocean. However, once the mountain was placed on the ocean, it began to sink. Lord Vishnu in his second incarnation, in the form of a turtle Kurma, came to their rescue and supported the mountain on his back. But before getting the nectar there were so many unwanted things that were came out of the occen.

In contrast, I think the same is happening nowadays. It looks like the global economic engine is being churned out to get the best out of it. Hence I bet once this slow down ends it will create opportunity for all. It happened before as well. It’s just a correction phase I believe. Just think can you afford a flat if it’s beyond your reach? So, Slowdown is helping your dream come true. If you have some money and confidence to invest/ (repay loan) go and buy it. It’s the best time to buy. If you get some good deals for household products buy it now. If you want to invest in stocks this is the opportunity. Warren buffet's theory works better now. When others are greedy, be fearful. When others are fearful, be greedy. The situation is exactly the similar now!

This is for sure. Slowdown will end. Hope lord Vishnu to come in new avatar! But, beware. Slowdowns are going to come in future as well. These are actually testing times. It makes you learn things beyond your routine 9-5 jobs. It’s just passing phase, but also the learning phase. Don’t hesitate to learn and to win!