In one of India’s biggest-ever layoffs, L&T sheds 14,000 employees from its workforce

According to The Economic Times,

lt-layoff“Larsen & Toubro, India’s biggest engineering firm, has shed 14,000 employees, or 11.2% of its total workforce.

L&T has been facing challenges with customers deferring orders and falling oil prices contributing to a sharp slowdown in the Middle-east, one of its biggest bets. Competition has increased in domestic market as companies fight for a shrinking order book pie.

It also incurred losses due to inability to pass on cost escalation and other issues. In the first half of FY17, its revenue increased 8.6% to Rs 46,885 crore. Profits rose to Rs 2,044 crore from Rs 1,197 crore a year ago.

In April the non banking finance company of the engineering major Larsen & Toubro, had asked over 550 employees to quit due to high costs and a muted business environment. L&T Infotech has a high attrition rate of 18%.

L&T launched a five-year strategic plan this year aiming to scale up revenue to Rs 2 lakh crore. The plan identifies some non-performing businesses that have been put under scanner and call on them will be taken in 18-24 months.”

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