A fifth of Satyam’s workforce has left since fraud exposed

Around a fifth of Satyam’s workforce has quit the company since chairman Ramalinga Raju admitted falsifying billions of dollars worth of revenue in January, a company executive admitted today.

The news will add to the fears of Satyam customers, currently caught between the uncertainty surrounding the company’s future and the difficulty of switching suppliers. And it may also deter the companies looking to acquire the Indian outsourcer.

“Till ten days ago, when we could still find out the staff strength, it used to be around 46,000, but since then there have been several hundreds of employees leaving with clients,” Indian website live.mint.com quotes a Satyam project manager as saying.

The company’s head count in January was 53,000. A Satyam executive has confirmed that it is now around 40,000.

The list of companies reportedly interested in acquiring the company now includes US private equity investor Wilbur Ross as well as Indian companies Larsen & Toubro, Tech Mahindra and Spice Group.  A deal is expected to occur before the end of the month.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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