Satyam was looking at cost-control steps including wage cuts but not layoffs.
Satyam Computer Services has more than 10,000 excess employees and is looking for the least painful way to deal with the situation, Tech Mahindra, the new owner of the scam-hit IT major said on Friday.
Vineet Nayyar, chief executive officer of Tech Mahindra said that there was a need to lower the headcount at Satyam. "Some form of least painful way of reduction in staff is an option which will have to be looked at," he added.
However, Kiran Karnik, chairman of the government appointed Satyam board said that the Hyderabad-based company was looking at cost-control steps, including wage cuts, but ruled out any layoffs.
On the issue of the US$1bn fraud and forgery lawsuit filed against Satyam by the UK-based Upaid, Nayyar said the company would prefer an out-of-court settlement as opposed to a long-term litigation. “It is in their (Upaid’s) interest and our interest, but there has to be a meeting of minds,” he added.
The Satyam board meeting, which Nayyar attended as a special invitee, was held to review the company’s progress and to get an update on the restatement of accounts by its new auditors KPMG and Deloitte.
"The auditors will have to go back as far as possible as there are issues relating to earlier times. We hope that in the next 2-3 quarters, we will get something done," said Karnik.
No comments:
Post a Comment