BENGALURU/MUMBAI: L-T Technology Services (LTTS) has laid off 200 people in the mid-to-senior roles, partly due to actions initiated as part of the performance cycle and to reduce role overlaps, sources told TOI.

LTTS, which has nearly 24,000 employees on its rolls, has seen job cuts mainly in delivery and support functions as companies have automated many functions.

The redundancies account for less than 1% of LTTS’ workforce.

LTTS focuses on engineering services straddling across transportation, telecom and hi-tech, industrial products, plant engineering and medical devices.But the Indian IT sector is navigating a challenging environment exacerbated by weakness in its mainstay business vertical, banking and financial services sector, that's reeling under macroeconomic headwinds as customers are pulling back their IT spending.

Companies are addressing these challenges by bringing cost efficiencies and operational rigour.

When TOI reached out to LTTS, its spokesperson said, “We conduct annual performance reviews as a standard process to assess the capabilities of our workforce every year, and act appropriately based on skill sets and performance.

This is essential for the maintenance of our high standards of service delivery, continuous upskilling while being nimble as an organization, and ensuring that we remain at the forefront of technological innovation.

Looking ahead, in line with our growth prospects and strategy, we continue to hire and add to the team especially in areas of plant engineering, digital - software engineering, AI and software defined vehicles with over 2,500 engineers,” he said.However, sources told TOI that there might be another round of job cuts in January, albeit after assessing the business environment.

LTTS has cut its full-year forecast.

The company expects its revenue to grow between 17.5% to 18.5% compared to its earlier estimate of 20%.

“Now the reason that we've been prudent and cautious slightly in terms of the guidance to say 17.5% – 18.5%, though our internal targets are to reach the original numbers that we had told you, is that the market in the last 3 weeks/5 weeks has changed slightly.

One, you are aware of the UAW (United Auto Workers) strikes from mid-September that have been happening in the US, which has put a pause on a couple of projects that we were working on.

We don't know when that's going to lift off,” its CEO Amit Chadha said in the recent investor call.

LTTS has registered a 3.2% sequential growth in constant currency and operating margin came in at 17% after it absorbed wage hikes.