HYDERABAD, INDIA: Though Union Corporate Affairs Minister Salman Khursheed had hinted that the Government of India would not turn a blind eye towards the lay-off of the employees at Satyam, the beleaguered IT services company is all set to lay off, what it calls the extra workforce, say reports.

According to 'The Financial Express', Satyam has already started the first phase of lay-off. Initially the axe would fall on trainers, HR and sales and marketing executives, said reports.

After its takeover by Tech Mahindra group, Satyam had prepared a list of around 10,000 employees on bench, who were supposed to be given a golden handshake.

Tech Mahindra's chief executive Vineet Nayyar had said that Satyam has more than 10,000 excess staff and that there was a need to lower headcount, though Kiran Karnik, chairman of the board appointed by the government to salvage the company, had said that Satyam was looking at cost-control steps including wage cuts but not layoffs.

According to reports, employees who have been on the bench for less than three months would be asked to leave in the second phase.

However, the number of people to leave the organization has not been revealed. Earlier, responding to the reports that Satyam would retrench 10,000 employees Salman Khursheed had hinted that the government may intervene in the matter.

"Layoffs is something we are not going to turn a blind eye to, as we have a relevant presence in decision making," he said. However, how can the government intervene in the internal matters of the company is a major question.

Meanwhile, The Australian newspaper reported that Satyam Computer has seen a 20 per cent reduction in its onsite staff strength in Australia.

Quoting Venki Prathivadi, Satyam's new country manager for Australia and New Zealand, the newspaper reported that the company has reduced its staff strength from 1000 to 800.

The report also said Satyam has reduced the number of its offshore employees in India serving Australian clients to 500 from 700.