L&T Tech Services cuts 200 jobs as automation replaces humans
What's the story
L&T Technology Services (LTTS) has laid off 200 employees, according to a Times of India (TOI) report. Delivery and support roles saw the bulk of layoffs due to the integration of automation in many functions. The company, which employs nearly 24,000 people, specializes in engineering services for various industries such as transportation, telecom and hi-tech, industrial products, plant engineering, and medical devices.
Details
Performance assessments and cost efficiencies
The layoffs are partially a result of performance evaluations and efforts to reduce role redundancies. An LTTS spokesperson told TOI, "We conduct annual performance reviews as a standard process to assess the capabilities of our workforce every year and act appropriately based on skill sets and performance." The Indian IT industry is currently encountering hurdles in banking and finance, demanding cost-effectiveness and operational discipline.
What Next?
Hiring continues in key areas
"This is essential for the maintenance of our high standards of service delivery, continuous upskilling while being nimble as an organization, and ensuring that we remain at the forefront of technological innovation," the spokesperson further said. Despite the layoffs, LTTS is still actively hiring and expanding its team in areas such as plant engineering, digital & software engineering, AI, and software-defined vehicles with over 2,500 engineers.
Insights
Lowered revenue growth guidance
Last month, LTTS reduced its revenue growth forecast for the current fiscal year. The company now anticipates revenue growth between 17.5% to 18.5%, compared to its previous estimate of 20%. CEO Amit Chadha attributed the slower revenue growth to integration with an acquired entity but noted that growth would have been 16% without the integration. He acknowledged that the company has been cautious with its guidance due to current economic uncertainties.