Date:04/11/2008 URL: http://www.thehindubusinessline.com/2008/11/04/stories/2008110451462100.htm

Back IBS clarifies on lay-offs

Our Bureau

Thiruvananthapuram, Nov. 3

The Technopark Thiruvananthapuram-based IBS Software Services has clarified that it is not laying-off employees.

However, as part of its routine HR processes, the company has recently discontinued the services of 27 employees, said Mr V. K. Mathews, Chairman and CEO, IBS Group, in a press release.

He was responding to recent media reports that the company had laid off a large number of employees. The services of these employees were terminated “after making sure that they will not be able to perform according to the job requirements,” the release added.

According to the company, all 27 employees who were asked to leave were given two months’ salary and other benefits.

IBS, which develops software solutions for the travel, transportation and logistics industries, expects to grow at over 50 per cent during the current year, the release said. The company is still recruiting and in the July-September period has recruited around 165 people.

IANS adds: Earlier, the Deputy Labour Commissioner, Mr Balachandran Nair, visited the IBS office and said: “We have found certain irregularities and this would be reported to the government.”

Justifying the company’s decision to lay off employees, Mr Mathews said: “IBS recruited over 1,000 in the past 18 months and it is quite possible that some of them will not scale up to fit the job.”