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Igate annouces termination of certain staff from Patni
Monday, April 4, 2011
Patni employees have a bad news to hear this morning and this comes from the Company which is acquiring patni. IGate recently annouced in a filling to SEC (Securities and Exchange Commission of the United States), iGate has pegged the “onetime costs amounting to $14 million ($9.3 million net of tax) relating to the termination of the services of certain employees” post acquisition.
Well i feel this should be an alarming news for the employees of patni and i believe they should take no chance in getting terminated one sad day. This is again a bad move from another company after acquisition in an employee perspective not on management. And also one thing they confirmed is about retention of higher level employees (management).
I always believe there should be a prior notice to employees who may get terminated in future. Or they can still keep the employee with them paying low salary, till he gets an another job with in a limited period of time. Lets see how patni gonna deal with this.
Well Prashanth, you got it completely wrong. This one time fees is related to termination of Jeya Kumar, CEO of Patni. Jeya had a mandate of cleaning Patni, making it more nimble and get the promoters good money. Since he wanted to make sure that he gets full support, he had a $20 million (90 crores INR) severance package. This was the reason why Anirudh Patni left company instead of Jeya when differences between them came up. Jeya, who has an annual package in excess of $5 million (20 crores) is going to be least worried.