Tech layoff continues; ITC Infotech-Happiest Minds to merge

Tech titan Microsoft and Oracle are reorganizing their Indian operations and reassigning funds to emerging business areas. According to Pareekh Jain of market research firm EIIRTrend, Microsoft has placed 500 employees in the country under performance improvement plans (PIPs). Oracle has prepared to cut 2,000-3,000 jobs. Microsoft India's workforce accounts for approximately 2% of the company's global headcount, which means around 400-500 individuals might be affected by the global PIP process.

Microsoft stated that employees failing to meet role expectations may face coaching, a PIP, voluntary separation, or termination. Meanwhile, food delivery company Zomato is closing its Hyderabad customer support center, leading to the loss of 250 jobs. The company has been shifting its customer support operations to outsourcing partners and consolidating in-house support at its Gurugram headquarters.

ITC Infotech, a wholly-owned subsidiary of ITC Limited, is acquiring a 22.1% stake in Happiest Minds Technologies for approximately Rs 1,330 crore. The deal is part of a strategic plan to merge the two companies. Post-merger, ITC Infotech will hold a 73.4% stake in the combined entity, with Happiest Minds shareholders taking the remaining 26.6%. The merged firm will be listed via a backdoor route, and ITC Limited will own a combined 73.4% stake.