According to Economic Times' reports, Kiran Karnik, the government-appointed Chairman of the scandal-ridden Satyam Computer Services said that up to 10 percent of the company's 48,000-strong workforce might be rendered redundant, as the founder had hired excessive staff to conceal the monetary scam at the firm.

The proposed move of downsizing the staff comes after mid-sized outsourcer Tech Mahindra Ltd - the highest bidder of this week's bid for a controlling stake in the Satyam Computer - took over the company.

Figuratively speaking, Karnik said that 3,000 to 5,000 employees were in excess, on top of the standard 'bench' pertaining to outsourcing firms. The 'bench,' generally 10 percent of a company's total workforce, comprises those employees who, though not working on any projects, are still hired for maintaining a company's preparedness to undertake new projects.

Karnik said that by planning a downsizing move, the company would be drawing on one of the three options generally laid down for dealing with excess staff; the other two being getting more business to correct the mismatch or cutting salaries.

Karnik ruled out any government arbitration for protecting the employees, and said: "It is for the board to decide and the board will be Tech Mahindra. I am very clear that we - the government-appointed board - are in a transition mode and we should be out soon."