Along with the increasing number of corporates rushing to the banks for debt restructuring, scores of them are also being forced to go in for manpower rationalising, reducing the headcount to save costs, said an ASSOCHAM report.
Companies in infrastructure (roads, ports and airports), gems and jewellery, educational solutions, realty, non-banking finance companies, especially in the gold-loan segments, media, public relation and advertising are resorting to manpower rationalising.
“More and more companies are approaching the consulting firms seeking solutions to cut costs so that they can weather the difficult economic environment vitiated by adverse global situation, pressure on currency, sinking stock market, high interest rates, inflation and limited elbow available with the government to bail out the troubled industry,” said the ASSOCHAM research report on Impact of Slowdown on Employment.
It said the pain is being felt most in realty, infrastructure, financial services like brokerages, gems and jewellery –particularly those in the domestic sector, media-particularly the cost-intensive television channels and gold loan related finance companies.
“The sad part is the situation is likely to become worse, rather than improve, in the weeks to come and the pain would only increase. The feedback suggests that the employers in the severely affected sectors are desperately trying to limit the damage as much as they can”.