Authors : Jesson Kenneth D�mello and N. Suresh
Abstract:
In recent days, layoff has become an essential requirement of the businesses to stay fit in the competitive market. In recent days, IT has also adopted layoffs in the organization. Sometime it could be a deliberate organizational decision as well to reduce the manpower, to increase organizational performance. The objective of the study is to determine the impact of layoff on the operations and profitability of the IT sector firms by looking at the service quality, technological levels, profitability and employee morale after the downsizing exercise. This study is based on 16 Indian IT service firms from the financial year of FY2010-FY2016. Data has been extracted from their financial statements which is published in official as well as different websites and tabulated. The study applied paired sampled t test has been done to know the impact of layoff and estimated the p value for conclusion. Later on company wise ROA (Return on Assets) and ROE (Return on Equity) details have also being pulled from company’s official website and formed a model to check the effect of downsizing through the financial aspects. Fixed and random model has been used to drawn conclusion based on p values. From the results, it is concluded that, downsizing plays a significant role in the company’s profitability.
Jesson Kenneth D�mello and N. Suresh, 2019. Impact of Layoff on Profitability of Selected Service Sector Industries in India. Journal of Engineering and Applied Sciences, 14: 5022-5029.