India's Information Technology Minister Rajeev Chandrasekhar today said that while the government "probably cannot" intervene to stop layoffs in the IT sector, it is working to ensure these job losses are "soft landings" — meaning enough time to find new jobs.
He insisted that there are enough jobs for talented people — "in fact there is a deficit" — but also outlined a Rs 460-crore "reskilling" plan.
"Maybe there is an issue where there are people of a certain type of skill, [while] the demand is of a totally different type of skill," he told NDTV. "And the government has spent and outlaid about Rs 460 crore to start a digital platform called 'FutureSkills Prime'... which will allow for youngsters within the industry to look for alternate skills... so they get the opportunities where the opportunities [are]," he further said, speaking on the sidelines of the India Global Forum meet in Dubai.
He underlined that the Covid pandemic and the Russia-Ukraine war as factors in the current global economy, but added that it's also a "clear understanding" that "ups and downs" are "in the very DNA" of the tech and startup space. The government is also asking startups to make their growth assumptions for the next one year "more realistic", he added.
"If a startup has been built with a certain assumption of growth, it is clear that the current headwinds in the global economy are going to cause some corrections in that assumption. It is part of the DNA of being a startup," he said.
"Is it something that makes me happy to see people who are in a startup being laid off? Of course not. Is there is there a way that the government can intervene? Probably not," he further said.
"Because these (laid-off employees) are talented people, they will land on the on their feet and find their place somewhere else. But it is not something that is very unusual for startups. You see that in Amazon in the US. You see that in Twitter, you see that in many, many companies all around the world. So, it is not unusual," he added.
Estimates say, globally, nearly 2 lakh people have lost their jobs in the tech sector. Facebook and Twitter are among global giants to have taken such steps — having laid off large numbers in their India offices — while India's homegrown ed-tech startup Byju's is also among the firms affected.
Asked pointedly if there nothing the government can do, the minister said, "I have spoken about making sure that these are soft landing... but I don't want to name them, because these are privileged conversations."
He asserted, "I make sure that I speak to the founders. I speak to them and say, 'Look, you have an obligation to make sure that these departures are soft, that you give them enough time to find some job; you help them with the finding replacement'."
He cited the recent layoffs at the hotel booking platform Oyo. "They made an extra effort to try and place them. I would like them (companies) to do more... It is absolutely important that you don't think of Indian employees as, you know, people that you can just get rid of on a whim or fancy."
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