Title: Workforce
Management in Dynamic Industries: Challenges and Opportunities in Hiring,
Firing, and Reskilling for Textile and IT Sectors
Abstract
The evolving landscape of the corporate world presents unique challenges and
opportunities in workforce management. This case study explores the intricacies
of hiring, firing, and reskilling in two contrasting industries: textiles and
IT. While textile companies grapple with seasonal demands and traditional
skillsets, IT firms face rapid technological advancements and intense
competition for talent. Through real-world examples, data, and incidents, this
study highlights strategies adopted by leading companies to navigate these
challenges, offering actionable insights for sustainable workforce management.
INTRODUCTION
The corporate world faces constant challenges in workforce management,
particularly in hiring, firing, and reskilling employees. These challenges
become more pronounced in industries like textiles and IT, where market
dynamics, technological advancements, and consumer preferences frequently
shift. Below is an in-depth exploration of these challenges and opportunities,
supported by examples, data, and incidents from leading companies.
Hiring: Challenges
and Opportunities
1. Textile
Companies:
o
Challenge: Seasonal Demand
§ Textile
companies like Arvind Mills and Raymond face
fluctuating demand based on fashion cycles and festive seasons. This
necessitates a flexible hiring strategy.
§ Example:
In 2023, Vardhman Textiles reported a 15% drop in workforce
post-Diwali due to declining seasonal orders.
§ Data:
Nearly 30% of the workforce in Indian textile companies are hired on a
contractual basis to meet seasonal requirements.
o
Opportunity: Leveraging Local
Talent
§ Many
textile companies are investing in skill-development programs for workers in
rural areas.
§ Example:
Khadi and Village Industries Commission (KVIC) collaborated
with NGOs to train 50,000 artisans, boosting employment in rural areas.
2. IT
Companies:
o
Challenge: Talent War
§ The
IT sector, led by giants like Infosys, TCS,
and Wipro, competes fiercely for top-tier talent, particularly
in AI and cybersecurity.
§ Example:
Wipro launched its "Velocity" program to attract AI
specialists, resulting in a 20% increase in applications for niche roles.
§ Data:
A 2022 report by Gartner indicates that 70% of IT firms globally face
challenges in filling positions in emerging technologies like AI and
blockchain.
o
Opportunity: Campus Recruitment
§ IT
firms frequently partner with universities to identify and groom fresh talent.
§ Example:
Wipro’s National Talent Hunt program identifies and trains
students in emerging technologies.
§ Incident:
Cognizant hired 50,000 freshers globally in 2022 to address
talent shortages.
Firing: Challenges
and Opportunities
1. Textile
Companies:
o
Challenge: Ethical Layoffs
§ Layoffs
in the textile industry often attract negative publicity, given their impact on
low-income families.
§ Incident:
In 2021, Welspun India faced protests after laying off 800
workers due to a shift towards automation.
o
Opportunity: Redeployment
§ By
reskilling employees, companies can redeploy them in areas like quality control
or logistics.
§ Example:
Loyal Textiles reskilled 20% of its workforce in warehouse
management during the pandemic.
§ Data:
A 2022 survey by McKinsey highlighted that 60% of redeployed textile workers
experienced improved job satisfaction.
2. IT
Companies:
o
Challenge: Cost Management
§ Companies
like Wipro, Meta, and Amazon
faced backlash in 2023 after firing thousands of employees during cost-cutting
sprees.
§ Fact:
A survey revealed that 62% of fired IT employees were middle managers with
outdated skills.
§ Incident:
Twitter, under new leadership in 2022, reduced its workforce
by over 50%, creating widespread criticism about the lack of transparency.
o
Opportunity: Transparent
Communication
§ Maintaining
transparency about layoffs can help retain brand trust.
§ Example:
Infosys offered extensive severance packages and counseling
services to affected employees during its 2023 restructuring.
Reskilling:
Challenges and Opportunities
1. Textile
Companies:
o
Challenge: Traditional
Skillsets
§ Most
textile workers possess traditional skills that do not align with modern
manufacturing processes.
§ Data:
Only 25% of textile workers in India are trained in digital tools like CAD.
o
Opportunity: Government Initiatives
§ Programs
like Skill India have partnered with textile firms to enhance
worker capabilities.
§ Example:
Aditya Birla Fashion and Retail trained 10,000 employees in
digital pattern-making through this initiative.
§ Incident:
The Indian government allocated $200 million in 2023 to support skill
development in the textile sector.
2. IT
Companies:
o
Challenge: Rapid Technological
Change
§ Technologies
like blockchain and AI evolve faster than reskilling programs.
§ Fact:
40% of IT employees in a 2022 Deloitte survey admitted they lacked proficiency
in new-age technologies.
o
Opportunity: Upskilling
Platforms
§ Companies
like Accenture use AI-driven platforms to provide personalized
learning paths for employees.
§ Example:
TCS spent $200 million in 2022 on employee upskilling programs,
resulting in a 30% improvement in project delivery.
§ Incident:
HCL Technologies reported a 50% increase in employee retention
rates after launching its "Aspire" learning platform.
Textile Industry
- 2018: Layoffs due to GST
implementation confusion; 5,000
workers across major textile hubs in India.
- 2019: Pratibha Syntex reduced
its workforce by 12%,
citing a drop in international orders.
- 2020: The COVID-19
pandemic led to massive layoffs, with Jyoti Overseas shutting operations in some
units, affecting 1,500
employees.
- 2021: Post-pandemic
recovery saw partial rehiring, but Arvind
Mills laid off 10%
of its workforce due to automation.
- 2022: Energy price hikes
led to cost-cutting measures; 2,000
layoffs across multiple companies like Vardhman Textiles.
- 2023: Global economic
slowdown impacted exports, with Welspun
India laying off 700
employees.
IT Industry
- 2018: Introduction of
automation tools led to 10,000
layoffs in mid-level roles across Infosys, Wipro, and others.
- 2019: HCL and Tech Mahindra terminated 5,000 employees globally,
citing restructuring.
- 2020: COVID-19 effects
resulted in 25,000
layoffs across BPOs and IT companies, including Capgemini.
- 2021: Workforce reduction
by Cognizant (9,000 layoffs)
to focus on high-value skills.
- 2022: The rise of hybrid
work models caused redundancies, leading to 15,000 layoffs in Accenture, TCS, and BPOs.
2023: Global tech downturn saw major layoffs at Wipro
(4,000), Infosys (6,500), and Amazon's
AWS wing, impacting middle managers
- Jyoti Overseas (2020):
Closure of units during the pandemic displaced 1,500 workers, raising
issues about severance pay.
- Pratibha Syntex (2022):
Shift to sustainable fabrics reduced workforce by 500, offset by investments
in automation.
- BPO Layoffs (2023): Call
centers downsized by 7,000
employees due to AI chatbots adoption in customer service.
- Infosys (2023): Announced
layoffs in the mid-tier segment due to "underperformance
criteria," affecting 5%
of its workforce.
- Capgemini India (2023):
Retrenchment of 2,000
employees linked to changing client demands in Europe.
Recent Examples and
Incidents (2024–2025)
1. Jyoti
Overseas (2024):
- The
company closed its Nagda-based unit due to mounting losses and reduced
export orders. This affected 1,000
workers, with no prior notice, sparking protests.
2. Pratibha
Syntex (2024):
- Despite
being a pioneer in sustainable textiles, the company announced layoffs of
500 employees after
losing contracts with European clients.
3. BPO
Sector (2024):
- AI-driven
chatbots replaced customer
service agents, leading to 10,000 job losses across
major BPO firms, including Concentrix
and Teleperformance.
4. Infosys
(2025):
- Layoffs
targeted middle-management roles as part of restructuring. Employees
expressed concerns over the lack of transparency during this process.
5. Wipro
(2024):
- Under
CEO Thierry Delaporte, Wipro eliminated several non-billable positions
while focusing on its “moonshot AI” initiative, affecting 4,000 workers.
Textile Industry
- 2024:
- Jyoti Overseas reduced
its workforce by 1,000
workers due to continued export challenges and high
operational costs post-COVID.
- Pratibha Syntex laid off 500 employees, citing
increased input costs and reduced demand for sustainable clothing in
international markets.
- 2025:
- Welspun India announced 800 layoffs, with plans
to transition toward more automated weaving and dyeing processes.
IT Industry
- 2024:
- Wipro initiated a 4,000-employee layoff as
part of its restructuring, impacting primarily mid-level managers.
- HCL Technologies
downsized by 2,500
employees globally due to slowed project rollouts and
cost-cutting measures.
- BPOs across India
collectively reduced their workforce by 10,000 employees, driven by AI adoption in
customer support roles.
- 2025:
- TCS announced the
termination of 2,000
employees in its global operations as part of a shift toward
AI-powered service delivery.
- Infosys let go of 3,500 employees,
attributing the decision to a slowdown in U.S. markets and non-aligned
skillsets.
Discussion Questions
1. How
can companies balance automation with ethical workforce management?
2. Should
governments mandate reskilling programs for industries with frequent layoffs?
3. How
can IT companies ensure reskilling programs align with rapid technological
advancements?
4. Can
textile companies adopt IT industry practices in hiring and reskilling? Why or
why not?
Teaching Notes
·
Objective: To analyze workforce
management challenges in two contrasting industries.
·
Activity: Divide students into
groups and assign one group to represent a textile company and another an IT
firm. Each group must present strategies to tackle hiring, firing, and
reskilling challenges.
·
Expected Outcome: Students will
understand the importance of industry-specific approaches and innovative
solutions in workforce management.
Conclusion
Both textile and IT companies face unique challenges in managing their
workforce, from hiring to firing and reskilling. However, these challenges also
present opportunities to innovate, collaborate, and build a more adaptable
workforce.
·
Key Takeaway for Textile Companies:
Invest in rural skill development and automation training to create a
sustainable workforce pipeline.
·
Key Takeaway for IT Companies:
Leverage AI-driven learning platforms and maintain transparency to mitigate the
impact of layoffs.
References
1. Gartner
Talent Report, 2022
2. McKinsey
Workforce Insights, 2022
3. Deloitte
Technology Skills Survey, 2022
4. Indian
Ministry of Textiles Annual Report, 2023
5. "Tech
Talent Wars: The Cost of Retaining Talent," Forbes, 2023
6. "Automation
in Textiles: The Future of Manufacturing," Business Standard, 2022
7. "Reskilling
in IT: The Role of AI Platforms," Harvard Business Review, 2023
8. "Employee
Layoffs: Lessons from Meta and Salesforce," Economic Times, 2023
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