Genpact Limited (NYSE:G) has some bad news for industrial estate workers in Hannover, the company is planning to send some jobs from the Hannover township to India. Genpact operates at a global scale, employing more than 24,000 workers across the globe. The management, however, is based in New York. In February a $140 million deal was announced with Kraft foods to employ about 350 people from the Kraft Foods facility in Hannover. However, uncovering the details revealed that workers jobs would later be transitioned to India. The news had been recently confirmed by Vice President of Brand Communications, Gail Ferrari Marold. She also outlined that the aim of the company was to re-train and re-deploy skilled American workers.
The representatives from the company said that the company has around 70 global delivery centers, with each one being placed in an optimal location. These locations are chosen depending on the needs of the client and their business impact. It is common, for some work to be shifted from one center to another, which happens to be the case here. The company believes that some work needs to be shifted from Hannover to India, so as to better serve the clients of the company and cater to their needs.
However, the company did say that the employees would be provided as many opportunities as possible, to the employees in question. There were 250 people working at Genpact’s Hannover facility, before the deal with Kraft Foods. With new additions and the plans to move, there is still no word on how many jobs would be lost at the company’s Hannover township facility. The company, however, does have plans for expansion of the facility to accommodate the additional people and equipment. Some progress had also been made in this regard, by acquisition of state funding for half the cost of expansion. The remaining half, of a total of $1.7 million, was to be paid by the company itself. The administration, however, hinted that the new hiring would take place, depending on the demands of the clients. Whether, this happens or not, we will have to wait and see.
Genpact Limited (NYSE:G) closed at $22.79 after a decline of 0.39% by closing bell yesterday.