HCL Tech lays off 350 employees as Indian IT industry struggles against global inflation

Indian IT giant HCL Technologies has laid off 350 employees as the information technology industry in Indian braces against strong headwinds amid growing concerns about global inflation.

The software behemoth has laid off 350 people involved in Microsoft’s news related product MSN, Moneycontrol reported on Tuesday. These people were working in India, the Philippines, and Guatemala, among other locations.

This development comes days after HCL Technologies dethroned Azim Premji’s Wipro to become the third largest IT company in India in terms of market capitalization, only behind IT leviathan companies like TCS and Infosys. Despite this, experts believe that the company might face volatility on the Dalal Street in the times to come. Manoj Dalmia, founder and director of Proficient Equities told Business Today, “Downside target of Rs 2970 HCL has a slightly better structure (as compared to other Indian IT companies), but it might undergo a sideways volatile phase.”

Pavitraa Shetty, co-founder, and trainer at Tips2Trades believes that this is because of weak global economic cues. She told Business Today, “HCL Technologies has seen severe selling in recent times despite robust fundamentals mainly due to globally weaker sentiment in the IT sector.”

HCL Technologies is not the only Indian IT company struggling due to macroeconomic pressures from across the world. The rising concerns of global inflation have also spelled trouble for other Indian IT giants like TCS, Wipro, and Infosys as well. These companies are facing margin pressures due to the increase in costs. Business Today reported in the month of August that TCS delayed the variable payout to its employees while Wipro deferred it and Infosys slashed it by 70 per cent.

ALSO READ: Why IT majors Infosys, Wipro, and TCS are scaling back on variable payout

ALSO READ: WFH vs WFO: IT giants TCS, Infosys, Wipro reassess situation amid urban floods in Bengaluru - BusinessToday