After Flipkart deferred its joining offers to fresh recruits last week, Larsen & Toubro Infotech recently withdrew job offers given to students, mostly in Chennai. According to reports; these students have now gone on a fast to protest against the move made by the company.
On its part, L&T Infotech has cited poor performance of these students as the reason for taking back the offers. These students were given offer of intent letters by the company in 2014. L&T Infotech hasn’t come out in public with a response to the situation; however, it is expected to soon issue a public statement. A week back, the company got the nod from SEBI for launching IPO in the market.
Last week, e-commerce giant Flipkart was at the receiving end of severe criticism and backlash after it delayed the joining dates of fresh recruits from India’s premier B-schools by seven months. To compensate for this delayed joining, Flipkart has promised a compensation package of Rs 1.5 lakh to all the candidates. However, after the spate with the IIM Ahmedabad authorities, Flipkart increased the amount to 3 lakh, which will be given to the student at the time of joining. The company had cited reasons like working on restructuring their businesses to strike the right balance among key levers such as innovation, strategic execution, and operational excellence, as the main reasons behind the delay.
On the other hand, things don’t look cheerful for other start-ups as well, given the fact that there is a slowdown in funding. Reportedly, a lot of these start-ups have withdrawn job offers given to students from premier colleges.
Some of these firms are even delaying their offers which have left the students with a lot of uncertainty. Ola is finding it difficult to absorb students whom they have hired and therefore, they are delaying their joining offers. Logistics start-up Roadrunnr has also deferred the joining of fresh recruits on the ground of expansion. On-demand grocery major Pepper Tap, which shut shop in April, had no other option but to withdraw job offers given to students.
The latest events have also raised concerns about the equation of these start-ups with premiere institutes like IIM and IIT, which according to many will get affected. As per the letter written by the IIM A placement cell and addressed to Flipkart co-founders, the college authorities requested them to reduce the period of deferment. They even pointed out that a lot of students take educational loans and this kind of a situation is causing a lot of duress to the students as well as their families. There is even news that because of the recent turn of events, Flipkart may also lose the coveted ‘Day 1 slot’.
Amazon, Paytm, ShopClues to come in as saviours
According to reports, students of IIM-A have reached out to companies like Amazon, Paytm and ShopClues. It looks like Flipkart’s loss might turn in favour of these companies, which are currently evaluating the resumes of these students and are looking to hire them, but only after an interview. These players have expressed interest in hiring IIM-A candidates who were left in a lurch post the Flipkart debacle.