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Admin| Jun 01, 2016 - 10:35 AM India
L&T Infotech revokes over 1000 job offers in South India
MUMBAI: L&T Infotech has revoked over 1000 job offers made in Tier 3 colleges in South India, leading some students to begin a hunger strike in Chennai .
The students, who were in the 2015 batch in the engineering colleges, were placed on hold for over a year and then were dismissed after L&T Infotech carried out a second assessment test.
A senior official at a Tamil Nadu- based technical university said that while L&T Infotech had not visited them, the company had withdrawn offers to over 1000 students across Tier-3 campuses. According to him, the company had undertaken these recruitment exercises at certain locations, where students from nearby colleges had turned up to participate in the process.
Media reports have pegged the number of offers withdrawn at 1500. ET could not independently confirm that figure.
L&T Infotech is in the process of finalizing its initial public offering and has already cut the size of the share sale. The company had not responded to a call and an email seeking comment. Experts say that revoking offers made signifies a potential softening of growth for the company.
"It is possible that they are not growing as fast as they thought they would. This is an unusual situation. IT companies have cut down the number of hiring from campuses but something like this is rare," an analyst with a Mumbai brokerage said. He declined to be identified.
He pointed out that a similar situation had occurred with HCL Technologies. In 2013, freshers who had received offers from HCL Technologies in 2011 went on strike as they had not received their joining dates. HCL Tech had issued a Letter of Intent to these freshers, a hiring practice typically used by IT firms.
A source with knowledge of the matter said L&T Infotech had also issued a 'Letter of Intent.'