News: Exclusive: Virtusa corporation sparks controversy with forced resignation of 400 employees

Strategic HR

Exclusive: Virtusa corporation sparks controversy with forced resignation of 400 employees

A former Virtusa employee said they took an online test without knowing the subject. Afterwards, 95% were asked to resign or face consequences.
Exclusive: Virtusa corporation sparks controversy with forced resignation of 400 employees

The tech sector has witnessed a growing trend of mass layoffs, as many firms resort to this measure to reduce expenses and reorganise their operations. Despite the industry's reputation for lucrative salaries, attractive benefits, and job stability, it remains susceptible to economic downturns and shifting market dynamics that can trigger substantial job cuts. 

This trend has been particularly evident in recent times, with various prominent tech firms announcing large-scale layoffs. One such company is multinational tech firm Virtusa Corporation. 

People Matters exclusively learnt that approximately 400 employees were abruptly dismissed by the company without prior notice. 

Several employees took to social media to share their experience, and upon contacting some of the affected individuals, we got to know that they were compelled to resign following an online test.

"We were asked to take an online test, but were not informed of the subject. After completing the test, a large number of us were informed that we did not meet the company's standards and would be laid off. Roughly 95% of the staff were asked to resign, and those who refused were threatened with a denial of experience certificates and withhold of three months' salary,” a laid off employee told People Matters. 

Employees from various locations, including Chennai, Hyderabad, Bangalore, and Pune, were terminated by Virtusa. The Union of IT & ITES Employees (UNITE) is opposing the alleged unlawful dismissal and has requested immediate government intervention.

UNITE had stated that the employees were being compelled to leave their jobs by threatening to black-mark them in the National Skill Registry. The union had further alleged that the employees were being emotionally manipulated by the employers for failing to deliver or sustain their performance at work. 

Additionally, there were complaints from freshers and new employees at Virtusa who claimed that they were forced to resign within two years, following which they were charged Rs 2 lakh for violating an illegal bond.

Virtusa is an IT company based in Massachusetts that has branches in various locations across India, including Tamil Nadu, Karnataka, Telangana, Maharashtra, and Haryana.

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Topics: Strategic HR, #Layoffs, #HRCommunity

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