IT major Mastek Ltd has been forced to reduce its staff strength and employ other cost cutting measure to mitigate the impact of global slowdown. About 425 staff members of company, out of 4,243 employees, mostly trainees or junior employees, have been put on 'virtual bench' for the next 12 months, in a bid to control the worsening situation aroused due to low demand and recession all around the world.

Sudhakar Ram, Chairman and Managing Director of Mastek Ltd told during media interaction, "We witnessed a slowdown in demand at the end of the last quarter. This move by Mastek is being taken to maintain its guidance and to maintain the company's profitability."

Staff members, put on bench, would be given monthly allowance that would be 20 per cent of their current salary till the improvement global financial conditions. However, they are assured to call back on work in case the company gets new contracts. They have also been given an option to leave the company with a compensation package.

Mr. Ram said, "These are tough times and market uncertainties are compelling us take steps that are unprecedented in our 26-year history. We have tried to balance the margin requirements of the company with the aspirations of young Mastekeers, and have come up with a plan that gives people an option to reinvent themselves as professionals."

The firm's net profit and income grew by 16 per cent for the third quarter of current financial year.