Satyam suspends capex, to move staff to low-cost countries

CEO of Satyam Computer Services, A S Murty, wrote to the company’s employees to announce a number of measures, in a bid to clamp down on costs.

The tech firm has been reeling under an acute cash crunch after the admission of the Rs 7,800-crore scam by its founder and erstwhile chief B Ramalinga Raju.

The measures:

1. Pre-sales, delivery support and operations support personnel to be located in low cost countries

2. All capital expansion plans of the company, unless required to meet customer deliveries to be put on hold.

3. All units to reduce domestic and international travel by 60%. Business class travel for executives to be suspended until further notice.

4. In cities which housed Satyam guesthouses, employees to be disallowed to stay in hotels on official trips.

5. To suspend intra-city car services. Onsite workers asked to take public transport.

6. Company to release several rented premises to reduce lease rentals.

The stock was down 3% at 10.15 am on Thursday on the NSE's index.