1 lakh layoffs by Sept in IT services: Report

MUMBAI: The Indian IT services sector may see up to five per cent layoffs - amounting to more than one lakh job cuts - over the next six months as companies focus more on cost-cutting due to persisting weakness in global demand, PTI reported on Monday quoting experts.

Companies may reduce workforce in this fiscal, mostly based on stringent performance criteria, according to the experts.

"We expect the knowledge industry (IT) to see 3-5 per cent non-voluntary exits in the first two quarters of the financial year mainly in senior and middle levels," P Thiruvengadam, senior director (Management Consultancy Services), Deloitte Touche Tohmatsu was quoted by PTI.

Given the fact that more than 22 lakh people work in the IT industry, five per cent non-voluntary exits would mean more than one lakh employees being shown the door by September.

As per the Nasscom estimates more than 22 lakh people were working in the Indian IT-BPO sector in FY2009 (till February), while indirect job creation is estimated at about eight million.