Even though Mahindra Satyam had promised its employees that their jobs are secure, many employees on the Virtual Pool Program (VPP) of the company have received an e-mail regarding a formal notice of two months.The Economic Times carried a copy of the e-mail, dated October 19, 2009, that was sent out to the employees, “In our earlier communication dated June 11, 2009, you were placed on VPP for a period of six months and accordingly, your Virtual Pool Leave is due to end on December 18, 2009. ”
“It is rather unfortunate that due to the continued economic constraints and business outlook, we do not anticipate that we will have the ability to recall many of our valued associates within the VPP period.”
Around 8,000 employees have become a part of the virtual pool that was formed on June 11, 2009. On that day Vineet Nayyar, CEO, Tech Mahindra had said that the VPP employees will be provided with basic salary, PF and medical insurance.
The six-month period of VPP will come to an end in December, 2009. Since the company does not have enough projects to accommodate all VPP employees, it has sent a two-month notice to over 5000 employees as per the employment contract.
The reason for the axing is believed to be the lack of enough projects to accommodate all the employees.
A Mahindra Satyam spokesperson denied the news regarding layoffs and said that the company has taken 1,500 associates from the virtual pool.