The country's largest IT company Tata Consultancy Services has asked 400 employees to resign. The company had earlier cut down on its incentives to employees.
Just two days back another IT major IBM had asked 700 of its employees to resign.
TCS has said, "It is part of the annual performance driven exercise. With less than 500 employees resigning every year, this reduces less than 1 per cent of the total employee strength."
Industry insiders are saying that the tremors of a US slowdown is costing the companies dear. A strengthening rupee is also seen to be one of the reasons.
According to an estimate, the cost of employees cost over 50 per cent of total cost for IT companies. The 12 per cent appreciation of rupee in the past one year has hits margins of most of the IT companies and now wages weigh on balance sheet.