The Ukrainian division of GlobalLogic, an international IT company that is part of the Hitachi Group, has made a large-scale staff reduction. According to Dmytro Lyganov, Head of Legal at GlobalLogic Ukraine, the company has laid off more than 1,000 specialists since the start of the full-scale war in the country. This information was made public in an interview with the Ukrainian edition of Forbes.
Liganov explained that although the company has 575 projects, the number of projects alone is not an accurate indicator of a company’s success. The main indicators are the number of employees and open vacancies. According to him, as of January 2022, the company employed almost 7,500 specialists, but now their number has decreased to less than 6,500.
Among the main problems the company faced were the inability to book most of its employees and to conduct business trips abroad to negotiate with clients. Liganov noted that the company was able to book only 10 employees out of 100 full-time employees, as many other employees are registered as individual entrepreneurs and therefore subject to mobilization.
It is noted that key employees who are not at risk of mobilization are important for attracting and retaining customers. The Ukrainian government has not been able to develop effective booking mechanisms. This affects the company’s strategic decision to expand its operations abroad.
GlobalLogic, a part of the Japanese company Hitachi, has been affected by the war in Ukraine. Ukraine was home to 31% of the company’s global staff, indicating GlobalLogic’s significant dependence on the Ukrainian IT sector. According to the data available before the full-scale invasion, the company had more than 23,600 IT specialists in 14 countries, with a significant number of them concentrated in Ukraine.
The full-scale war not only led to staff reductions in Ukraine, but also prompted GlobalLogic to expand its operations outside the country to reduce risks and ensure the stability of the company’s operations. The opening of new offices and engineering centers in Spain, the acquisition of Hexacta in Latin America and Fortech in Romania demonstrate the company’s active strategy of diversifying markets and resources.
These measures are part of GlobalLogic’s broader strategy under Hitachi to strengthen its international position and ensure sustainable growth in the face of global uncertainty and challenges.
