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BENGALURU: Igate may lay off 5% to 10% of its workforce or around 1,500 to 3,000 people over the next three months, sources familiar with the development said. The layoffs are said to be the result partly of a huge bench that the company created after it moved from just-in-time hiring to a hirefor-growth model. Sources said the expected growth has not materialized.The company hired 3,751 employees for the year ended December 31 taking the total headcount to 33,484 employees. The company's utilization rate has dropped from 80.6% at the end of 2013 to 75.9% at the end of 2014.This at a time when leading IT companies have significantly improved utilization.Several Igate employees told TOI, on condition that their names would not be disclosed, that the company attracted talent anticipating ramp up in key deals and clients. But recent management commentary suggests things have not moved the way it anticipated.CEO Askok Vemuri said in the last quarter earnings call on January 20: "We have also moderated our hiring engine due to delay and closure of our third large deal."In Igate's latest annual report filed in February, it said, "We expect our hiring numbers to be moderate in the future due to the increase in the adoption of our business model, technology automation and stable retention rates." The company's growth rate was steadily improving since the middle of 2013, but the last quarter was a disappointment.Asked about the likely layoffs, Igate said, "This is completely untrue and at the best can be a rumour.Igate has neither laid off any employee nor has any intention whatsoever. It ap pears some external elements in order to establish some kind of an IT association is spreading these rumours so employees can get insecure and join hands with them."The company said that as a part of the performance appraisal for 2014, a few employees had been put on PIP (performance improvement plan) since they were rated as NI (needs Improvement). "PIP is a devel opmental plan with investment from the company to train and develop employees in a focused manner.This shall not be understood as an effort to separate employees," the company said.The company also sent an email to employees last week along similar lines.The mail from Srinivas Kandula, chief people officer, also said, "Employees who will complete their PIP successfully will be confirmed and those who are not will be dealt within the framework of the company policy."An employee who has been put on a three-month PIP said, "I was told that even if I give it my best shot, I will have to resign at the end of my PIP. They are not talking about a severance package." A former senior executive at Igate said about 5% of employees are put on PIPs every year.But this year the number is said to be twice that.>>> @toi_tech >>> TOI_tech