Gripped with a sheer slowdown in its business India’s seventh largest conglomerate, Larsen and Toubro, reduces its work-force by laying off a staggering 14000 employees. This is said to be constituting 11.2% of the total workforce of L & T.
The reason stated by the company was that they are trying to right size the organisation according to their strength in the wake of a slowdown in business. Some facts about the layoff are:
- Larsen and Toubro, $16 Billion conglomerate, is the biggest engineering firm in our country.
- This is the biggest corporate lay off in recent times.
- The Layoffs were done across businesses during April-September this year.
- Digitisation across different departments have turned a lot of jobs redundant.
- Falling oil prices have also contributed to the slowdown as Middle-east is one of the biggest clients of the company
The lay off in such a big number signals a challenging time ahead. Recently President Pranab Mukherjee stated that in 2015, 1.35 Lakh job were created, which is lowest in the past seven years and how it will spell disaster for the country.
With thousands of people losing their job, the move also casts a dark cloud over Prime Minister Narendra Modi’s plans of providing employment to the youth. During his rallies before the 2014 Lok Sabha elections, PM Narendra Modi made repeated promise of creating two crore jobs per year; we hope PM fulfils his promise.