17/05/2017 10:53 AM IST | Updated 17/05/2017 10:53 AM IST

IT Secretary Denies Mass Layoffs In The IT Industry

"New technologies are emerging, new verticals are being created."


In the wake of major layoffs by infotech companies such as Wipro and Cognizant, India's IT secretary denied that there is a trend of layoffs in the IT sector.

"I don't know how this narrative is being built," Aruna Sundararajan, Secretary to Ministry of Electronics and Information Technology said, as reported by NDTV. "I have the categoric assurance that this year's performance appraisal is no different from the earlier years."

The new American visa rules put in place by the Trump administration are being cited as one major reason behind the layoffs.

"What's happening is that new technologies are emerging, new verticals are being created, cloud computing among others. People are moving from one field to another," Sundarajan said.

NASSCOM, the IT trade association, also refuted claims of mass layoffs in the industry. In a statement, the trade body said that the retrenchments were part of the regular appraisal process.

"In fact the industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year, though the focus is shifting from scale to skill. Talent and skills are the key building blocks for the industry which is intensifying investment in skilling/reskilling its workforce to strengthen its foundation on a continuous basis," the statement said.

However, news reports seem to be telling a different story. A report in the Economic Times noted that Cognizant laid off over 6,000 employees, Infosys let go a 1,000 people, Tech Mahindra cut 1,500 jobs, and Wipro gave the pink slip to 600 employees. According to a report in Mint, India's top seven IT companies are set to slash their workforce by 56,000 jobs collectively.