Schlumberger revokes IIT job offers, lowers salaries after the massive crude oil price crash

• The global oil price crashing to a new low has cost Indian fresh graduates their jobs.
  
• Energy major Schlumberger revoked the job offers extended to the Indian Institute of Technology (IIT) graduates.
  
• Two of the selected graduates from IIT Kanpur and Madras have now been offered a similar role — but at a lower salary.
  
• The oilfield services multinational said that it is adjusting to the ‘sudden reduction in consumer spending’.
  
• This comes after the company announced its first quarter results for FY21 and said that it expects at least a 15% drop in customer expenditure globally.

The global oil price crashing to a new low has cost Indian graduates their jobs. Impacted by the decline in oil demand due to Coronavirus lockdown, energy major Schlumberger revoked job offers extended to the Indian Institute of Technology (IIT) graduates.

The oilfield services multinational said that it is adjusting to the ‘sudden reduction in consumer spending’. The company had given job offers to candidates at least five IITs.

On April 6, Schlumberger told IITs that it will reduce the intake of new campus hires, withdrawing a few internships and job offers. “We will personally communicate our decision to each student who is affected by this decision,” Indian Express reported citing the letter by Gautam Reddy, MD, India and Bangladesh at Schlumberger.

IIT graduates bagged ‘above-average salary packages’ this placement season

According to the report, two students at IIT Delhi and Bombay have lost their jobs at Schlumberger. While two other selected graduates from IIT Kanpur and Madras have now been offered similar roles — but at lower salaries.

Given the current situation, it does not help that most of the IIT graduates bagged ‘above-average salary packages’ this placement season.

IIT Kharagpur students also bagged a few offers from Schlumberger. “As on date, none of the offers were revoked. That was a generic email. We haven’t heard back from them,” Parag Deshpande, vice-chairperson, CDC at IIT-Kharagpur said.

“As of now we have withdrawn the offers. If the business climate changes, we will be the first to reach out to those who have been filtered through the whole recruitment process,” Reddy added.

‘We have to take care of our employees first’

Reddy also said that employees across the top management have already taken a pay cut due to the Covid-19 crisis. “We have a longstanding relationship with the IITs. I am from IIT-Bombay. Recruiting from IITs is a continuous process for us. At this point in time, when we are doing business restructuring, it’s just not fair to our current employees. We have to take care of them first. It’s as simple as this.”

During the first quarter results for FY21 the company said that it expects at least a 15% drop in customer expenditure globally and 40% in North America. It clearly indicates how disruption in supply chain, plant shutdowns and dropping revenues forced companies to rethink placements.

Gartner rescinds 11 offers at three IITs

With this, Schlumberger joins Gartner, the global research advisory firm to withdraw offers given to new hires. Gartner rescinded nearly 11 offers at IIT Delhi, Madras and Kanpur campuses last month.

After that, V Ramgopal Rao, director at the Indian Institute of Technology (IIT) Delhi appealed to recruiters saying “a few months of delay may be fine. If at all, these students are capable of getting you out of recession faster than you can imagine.”

The changed environment left these young minds stranded with no job at hand. The institutes are now figuring out ways to place the students whose offers have been revoked. They are even reaching out to their alumni network to place students in the less-affected sectors.

On the other hand, IIT-Kanpur director Abhay Karandikar also said that the institute will arrange a dedicated placement drive in July-August for those students who have been affected by the withdrawal of offers.

See also:
Crude oil prices didn’t fall below zero, futures did – and here’s what it means

IIT and IIM job offers are fast vanishing and a second placement drive in July might be underway

TCS, Cognizant, Capgemini and other top giants who are not letting go of their new hires