CDK Global (India), an integrated IT solutions provider which spun off from Automatic Data Processing Inc, is said to have laid off scores of employees from its Pune and Hyderabad facilities, an association of software engineers has said.

According to the Forum of IT Professionals (ForIT), around ‘180 employees were laid off’ from both offices beginning last Friday.

“Employees were called into discussion rooms on the pretext of meetings and were asked to leave the company within 30 minutes,” ForIT president Kiran Chandra said.

On Tuesday afternoon, ForIT members reached Raheja Mindaspace office where the company is located and sought a meeting with CDK Global executives.

However, their attempt was unsuccessful. They later demanded that the retrenched employees be reinstated.

“ForIT extends full support to all the employees in this regard and stands in solidarity,” they said.

In a communication to the media, CDK Global (India) confirmed the layoffs but pointed out that 103 employees were ‘impacted’ due to the move.

“In contrast, this business led action impacted 103 employees across centres in both Hyderabad and Pune, and the actions taken were driven by both organisational redundancy as well as employee performance,” CDK Global (India) Managing Director Arvind Chaturvedi said.

“As we align ourselves with our growth strategy, we would need to review our organisational structures and roles from time to time, as would any business. In the event that this results in role redundancies, CDK remains committed to deal with its employees in a professional and empathetic manner, providing the necessary financial & outplacement support where appropriate. These decisions are always made through consultation and mutual agreement,” the MD said.

Plans to recruit

The company also said it employed 800 people in its first year in India and the number has grown to 1,400 since.

The company said it ‘continues to recruit’ and that plans are afoot to add another 150 employees this quarter.

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