Private sector employees are constantly under the risk of losing their jobs. According to one report - between 2017–18, Indian IT industry laid off over 56,000 people, in just one year!
While economic slowdown and recession bring major shifts, (In the last recession 8.8 million jobs were lost worldwide) there are other factors too. You simply cannot rest even if your company and country is doing just fine.
Many people confuse when they read the headline stating ‘IT sector to create (some random number) jobs in the coming year’. But that does not mean what you think it means. There is concept called ‘Pyramid Rationalization’.
This is done to reduce the cozst to run an organization. It says that any company should have highest number of employees at the lowest level (usually <4 years of experience) and then the number should subsequently reduce as you move to the top. Which is quite logical. You don’t need 100 managers to manage 50 employee, it has to be the other way round.
Now, this pyramid has a notorious tendency to turn upside down with time, and then the company is left with only one alternative- lay off staff who fall into the middle of this hierarchy, which is know as pyramid restructuring.
So now you know, higher your post, higher you are at risk of losing your job. Recession then acts as a catalyst, because laying them off will save a lot of fund.
And now I’ll like to change my statement from “Private sector employee..” to “Private sector employee, especially who are in the top positions are constantly at the risk of losing.
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