'Speak with people before walking them out.' Former Tech Mahindra CEO has a word of advice for tech bosses sacking staff

It has been a particularly depressing winter for tech companies, across the world. Big and small ventures have had to rationalise their costs, triggered by a slump in demand of services. From Google and Microsoft to Salesforce, Meta and Twitter, the tech-verse has seen a deluge of retrenchments and exits. Tech giant Google recently came under fire for firing over 12000 employees. Microsoft also announced a layoff of 10,000 employees.

In the midst of the current layoff season that has also seen Indian start-ups trim their workforce, a seasoned voice from the world of Indian tech shared his thoughts. Kiran Deshpande, former CEO of Tech Mahindra, identified some key issues pertaining to the current state of affairs.

In a LinkedIn post, Deshpande attributed "overhiring" as one of the key points that has triggered the modern-day crisis. "Over hiring that leads to layoffs when chips are down," he wrote referring to the "current layoffs by giant technology corporations that have sent shock waves around the world."


The BITS-Pilani and IIT-Bombay alumnus, who was at the helm of affairs in Tech Mahindra for 5 years including the 2001 US bust, urged tech CEOs to take a more practical and judicious fiscal approach in order to avoid a calamity. "Frugality in running a technology business even when it is ringing money is critical. Effectiveness of software people these days is crucial. For example, suboptimal output by the Indian #software community is often hidden behind the cost arbitrage," he wrote.

Deshpande, who is the co-founder of Mojo Networks, went on to say that "CEOs must address this right away else a nasty fall or serious injury is not too far away."

He also wrote that "boards and CEOs of global industry giants must recognize their social responsibility." Referring to corporate accountability, the former tech veteran emphasised that "it is time to ask them questions about their roles and responsibilities beyond shareholder value. And it can’t only be the country where these corporations are headquartered. Governments and law makers around the world must get their arms around this issue."

Lastly, Desphande had a word of advice for all CEOs who have found themselves in the hot seat. The corporate leader, who joined as Tech Mahindra's CEO in June 1996, urged top bosses to show some empathy to those facing the sack. His advice to tech leaders was "don't give any notice period but speak with the people before walking them out. Minimum courtesy, please!" he wrote.

Capping the "brutality of layoffs", he admitted that a CEO's job is a tough one, and the chances of making a mistake are high. But he urged all CEOs to retain civility while doing the job.

"The job of a CEO is tough. You don’t get all things right all the time. Hiring may go overboard but firing doesn’t have to be so uncivilized," he wrote.

Do you know someone who has got the pink slip? Was the manager empathetic while breaking the bad news? Let us know in the Comments section.