DLF Ltd Cuts Staff Strength By 30%..!

Indian Real Estate Major DLF Ltd reduced its employee strength by 1,100, or about 30%, during 2012-13 after outsourcing its construction and facility management activities.

DLF Ltd had 2,600 employees on its rolls at the end of 2012-13, compared with 3,700 employees at the end of 2011-12, according to the firm's latest annual report.

The 1,100 employees have not been laid-off but have been redeployed to the outsourcing firms, a firm official said.

"...It (DLF) has successfully outsourced the project execution / management and facility management. In addition, outsourcing of some of the accounting functions is also under way," DLF Ltd said in the annual report.

The firm said its objective is to nurture & harness core management teams and explore outsourcing that would enhance management bandwidth and focus.

India's largest real estate company outsourced construction for its current & upcoming projects to contractors like Larsen & Toubro to avoid delays. Facility management has been given to property consultants such as Cushman & Wakefield and Jones Lang LaSalle (JLL).

In a message to shareholders, DLF Ltd Chairman Mr. K. P. Singh said the real estate sector faces various challenges, including the absence of a long-term funding mechanism, prevalence of the Urban Land Ceiling Regulations Act in some states, lower floor area ratio in cities, high stamp duties & problems in land acquisition.

"These sector specific challenges became more glaring in the context of an increasingly fragile economic scenario last year and the sector's extended underperformance" Mr. K. P. Singh said.

He highlighted that real estate is not only a key economic sector in terms of its direct GDP contribution, it is also an important employment generator because of its forward and backward linkages with nearly 300 other sub-sectors.

"The company continued to steadfastly implement its strategy to focus on its core business of real estate development and leasing, launch of select residential & commercial projects in targeted geographies...Divestiture of non-core assets and reduction in debt" Mr. K. P. Singh said.

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