L&T sizzles on bourses but lays off 14,000 of its employees

Apart from the excellent results that L&T has announced, the other headline that grabbed attention from the announcement was the laying off of the 14000 employees of L&T.

L&T revenues have increased 8.6 per cent to Rs 46,885 crore and the profits have risen to Rs 2,044 crore for the first half of FY17.

The company said owing to the tough economic environment and challenges L&T had to lay off 14,000 employees across businesses in the first half of the current financial year.

L&T’s CFO, R Shankar Raman while addressing the media said the move was necessary as the company needed to stay agile and competitive.

L&T has an employee base of almost 1.2 lakh persons working across various businesses.The major areas which saw de-staffing were the financial services and minerals & metals.

With increasing competition, the company is trying to make its back offices more digital said Raman. 
The company was quick to clarify that it is a one off move and there is no fixed strategy on laying off of candidates.

The company in its newly designed five point strategy aims to scale up revenues to Rs 2 lakh crore, which is possible by identifying performing businesses at current juncture.

L&T shut shop at Rs 1,357 per share, up by almost 2.16 per cent or 28.65 on Wednesday.