L&T lays off 14,000 employees in 6 months

News Agencies | First published: 23 November 2016, 12:34 IST

Faced with economic challenges, engineering major Larsen & Toubro (L&T) has laid off 14,000 employees across businesses between April and September 2016, saying it was necessary to stay "agile and competitive".

"It was a strategic decision that if a business is not in good shape, we are trying to resize it. If there is time to get the business back to normalcy, it is important to reduce the under-recoveries. So, the jobs that we are finding redundant, we are allowing people to move on," the company's Chief Financial Officer R Shankar Raman said.

"We have an employee base of 1.2 lakh across various businesses, and we have laid off 14,000 people during the first half of fiscal 2017," he added.

Without giving specifics of the different verticals in which the layoffs happened, Raman said, "Financial services have defocused on certain lines of businesses and let go a lot of people. Same is the case in minerals and metals."

He added that the company has tried to look at its businesses in a different way to remain competitive.

"We have adopted various initiatives to be competitive. We have tried to introduce digitisation whenever necessary, so in case if we needed 10 people for a job we tried to bring it down to five. The layoffs have been done in businesses which are moving slow due to various reasons including delayed execution, among others," Raman said.

He said the company has tried to make its back offices more digital.