As the world moved from 2023 to 2024, the world of work saw significant developments, including a high-profile dispute among Indian IT giants like Wipro, Infosys, and Cognizant. Alongside this, numerous other intriguing events unfolded. Wondering what occurred during your break? We've got you covered. Here's a rundown, in no specific sequence, capturing the happenings from Christmas through the New Year.
Google eyes 30,000 layoffs amid AI efficiency boost
Google's push for AI advancements, including projects like Gemini and Google Bard, hinted at potential job cuts within the company. Reports suggested that Google may lay off 30,000 employees in its ad sales division as it plans to restructure teams, with AI aiming to boost operational efficiency. Sean Downey, head of ad sales for major accounts in the US, hinted at the reorganisation, highlighting the impact AI could have on job roles. This shift primarily targets the ad sales team as Google explores AI's benefits for operational streamlining. Earlier this year, Google introduced AI-powered ads promising a conversational experience within Google Ads, simplifying campaign creation. This AI could analyse websites and generate keywords, headlines, and visuals.
Tata Sons Chief's 2024 disruption alert
Tata Sons Chairman Chandrasekaran urged preparedness for disruptions and volatility in 2024. He highlighted technology's pivotal role in Tata Group's strategy, foreseeing challenges from global governance complexities and geopolitical tensions. Despite 2023's successes, Chandrasekaran emphasised execution, customer satisfaction, and technology as key priorities for 2024, urging active shaping of technology across companies. He concluded with optimism for India's future amid global uncertainties, drawing inspiration from the nation's achievements.
Paytm axes 1,000 employees
Paytm's parent company, One 97 Communications, let go of more than 1,000 employees across departments as part of a strategic move to streamline operations and reduce expenses. These layoffs, occurring over recent months, mark one of the most substantial downsizings in an Indian tech firm this year. Affecting over 10% of Paytm's workforce, these job cuts follow recent changes, like withdrawing small-ticket consumer lending and discontinuing "buy now pay later" services on the UPI platform. The company plans further cost reductions to align its operations.
The majority of cuts originate from Paytm's lending arm, which experienced significant growth. While the exact number affected is unclear, the fintech aims to decrease staff costs by 10-15% this fiscal year. Paytm holds Rs 8,754 crore in cash balances as of September.
Banking industry's grim year: 60,000 jobs slashed
Global banks slashed over 60,000 jobs in 2023, reminiscent of financial crisis cuts. Investment banks faced fee declines, prompting significant downsizing efforts to safeguard profit margins. Notably, UBS and Credit Suisse's merger resulted in 13,000 job losses, with forecasts for more. Wall Street giants like Wells Fargo, Citigroup, and Morgan Stanley reduced staff counts amid revenue challenges. The industry reels under economic uncertainty, with job cuts signalling a cautious approach amidst dormant deal making prospects.
TCS receives notice from Labour Dept
The Maharashtra labour department issued a notice to Tata Consultancy Services (TCS) following a complaint from NITES, alleging improper transfer practices affecting over 2,000 employees. Despite an unanswered email to TCS, the company is set to disclose its Q3 FY 2023-24 financial results on January 11. NITES, representing IT industry workers, reported over 300 grievances to Maharashtra’s Ministry of Labour and Employment, accusing TCS of disruptive employee transfers lacking proper notice or consultation.
According to NITES President Harpreet Singh Saluja, the company withheld salaries from dissenting employees facing forced transfers. Business Standard obtained an email from TCS threatening salary stoppage for employees failing to comply with transfer directives. Earlier, NITES lodged a complaint against TCS with the labour ministry for delayed onboarding of lateral recruits in July 2023. Amid pandemic recovery, TCS led in mandating a five-day office presence, followed by Infosys and Wipro requiring at least three days in-office for employees.
Happy New Year!