At a time when middle rung b-schools are struggling to find jobs for their MBA graduates due to a tighter job market, leading consumer durables company LG Electronics India Limited (LGEIL) has revoked almost 25 job offers that it had made to management graduates across b-schools in Mumbai, Pune and Bangalore in September 2011.

Some of these b-schools include Alliance University School of Business in Bangalore, ICFAI Business School, Pune and International School of Business & Media also in Pune, as confirmed by sources in these b-schools.

The South Korean chaebol has sent individual letters the graduates during the second week of April 2012 stating that due to unforeseen business circumstances, their job offers had been revoked. A compensation cheque worth Rs 70,000 for each graduate was also attached with the letter.

The letter read, We regret to inform that due to unforeseen and compelling business circumstances we are not able to execute the letter of intent for employment. Therefore, it stands withdrawn. It further stated, As a small token and goodwill gesture from our side please accept a pay order of Rs 70,000 rupees. We assure you that in the future, as and when circumstances allow you would be given an opportunity to work with us on priority.

A student from Alliance University in Bangalore, who did not wish to be named told PaGaLGuY, LGEIL has been a regular recruiter in our college since the last five years. They had offered an annual package of Rs 6 lakh for sales and channel management profiles. If I get a call from LGEIL, I would definitely like to join them in future.

Now that the LG option is out, the graduates left without a job are trying hard to find a job through other avenues. But, It is a difficult scenario at the end of the placement season. We are still waiting for companies to come for recruitment. Had LGEIL informed us about their decision sometime earlier this year, it would have been easier for us to get placed, he explained.

LGEIL admitted to have revoked the job offers. Vice-president, marketing of LGEIL, LK Gupta told PaGaLGuY that Since January 2012 LG is not considering any additional staffing at entry level. This move is aligned with its vision to optimise current resources in line with global organisation structure. The candidates in question were informed in advance and duly compensated as a goodwill gesture from the companys side. As soon as the organisation considers any additional hiring at entry level it will consider these candidates on priority.

According to the latest published reports, LG Electronics Inc had posted a second straight quarterly loss in the fourth quarter, even though the year-to-year losses had narrowed down due to improved business in the mobile handsets and flatscreen television divisions category. Sales for LG products in the developed nations are expected to be limited due to the global economic downturn but the company will continue to bank on emerging economies such as India to grow.

But in the domestic market also, LGEILs revenues grew marginally to Rs 16,200 crore from Rs 16,000 crore in 2011, much below its annual sales target of Rs 20,000 crore, and is attributed to poor performance of the mobile business.

Are you aware of other cases of job offers having been rescinded at b-schools this year?