The toxic work culture debate has heated up after recent allegations against major corporations. Just weeks after the tragic death of a young chartered accountant at EY’s Pune office and claims of a toxic work environment there, Italian scooter manufacturer Piaggio’s Indian subsidiary is facing similar accusations. This growing under current is no longer confined to murmurs within office corridors—it’s become a loud, undeniable issue.
Unlike the EY case, where a junior employee was the victim of alleged harassment from middle management, the case at Piaggio India hits closer to the top. Senior management is now under scrutiny. A local parliamentarian, BJP MP Praveen Patel, recently wrote to Maharashtra’s labor department, urging an investigation into claims that mid- and senior-level employees at Piaggio Vehicles Pvt Ltd (PVPL) were subjected to toxic behavior.
The Details On Piaggio’s Corporate Struggles
In August 2024, Piaggio India’s toxic work culture came to the spotlight following the sudden and allegedly unlawful termination of Dhiraj Tripathi, a senior manager at Piaggio Vehicles Private Ltd.
Patel’s letter points out that Tripathi, a well-respected figure with 27 years in the automobile industry, was fired without any notice or explanation, damaging his professional reputation. After seeking legal recourse, Tripathi reportedly faced harassment through false police complaints, leading to severe mental distress.
Piaggio’s abrupt termination of Tripathi, particularly without following protocol, has triggered more questions about the treatment of employees. Another senior employee, who recently resigned, shared their concerns anonymously, accusing the company of toxic practices. According to them, Piaggio’s new policies are designed to minimize financial payouts and include harsh non-compete clauses that have made leaving the company difficult.
Allegedly, Tripathi was heading the company’s exports division before he was abruptly sent home after a meeting with Diego Graffi, chairman and managing director of Piaggio India, in August.
Despite this, Piaggio maintains that all actions were within the employment contract terms. The company, which has been in India for over two decades, is certified as a “Great Place to Work” and is recognized as one of India’s top 50 workplaces in the manufacturing sector. Yet, allegations suggest deeper, systemic issues, particularly under current leadership, with Patel citing a history of over 20 senior-level terminations in recent years.
Is Toxic Work Culture Exclusive to MNCs?
The issue of toxic work environments is not limited to multinational corporations (MNCs).
Take the example of Indian banks, where employees in roles like sales representatives, home loans, credit cards, and relationship managers face relentless pressure to meet unreasonably high monthly targets. Missing those targets, even for just three or four consecutive months, can often mean you’re out of a job.
The consequences don’t end there. When you go looking for a new position, especially within the same sector, you’re almost certain to be asked one critical question during the interview: Did you meet your targets, and if not, why did you quit? The stigma of not meeting these inflated targets can follow employees, severely affecting their chances of getting rehired. It raises the question: should such details even be a deciding factor in the hiring process?
Beyond banking, Ola Electric has been a recent hotbed of controversy over its toxic work culture. The company’s CEO, Bhavish Aggarwal, has faced mounting criticism for creating an unhealthy work environment, with reports surfacing about aggressive behavior, unrealistic expectations, and a culture of fear and intimidation. Despite its groundbreaking role in India’s electric vehicle revolution, Ola Electric’s internal practices are anything but progressive. Employees have reported being subjected to erratic working hours, and the pressure to meet ambitious production goals has left many feeling burnt out. The very public scrutiny of these issues has highlighted the darker side of India’s startup boom.
Similarly, Byju’s, India’s ed-tech giant, has become infamous for its aggressive sales tactics and unrelenting work culture. Employees, especially in the sales division, have reported high levels of stress, absurdly long hours, and a constant need to meet targets or face termination. Byju Raveendran, the company’s founder, has been under fire for fostering this environment, which some describe as toxic and exploitative.
Complaints have emerged from various levels of the company, Byju’s internal culture has been a glaring issue. Employees have recounted how the pressure to close deals and sell expensive educational products to families, often without considering their financial circumstances, is overwhelming. For many, this is not just about long hours but also the emotional toll of working in such a hyper-competitive environment.
And then there’s Infosys, one of India’s leading tech firms, which has also faced its fair share of allegations of toxic work practices. While Infosys remains a global IT powerhouse, recent whistleblower complaints have revealed the mounting pressures within its ranks. Employees have spoken about the growing gap between top management and the workforce, with grievances about poor work-life balance and stress due to demanding client deadlines. While not as publicized as some other cases, the discontent brewing in India’s IT sector is undeniable.
Even Tata Consultancy Services (TCS), often celebrated for its employee-friendly policies, has had to deal with allegations of toxic work conditions, especially during high-stakes projects. Employees have pointed to a culture where long hours are normalized, and burnout is rampant during key project deliveries.
These examples make one thing clear-toxic work culture isn’t confined to the glossy offices of global multinationals. It runs deep within Indian companies, from traditional industries to the new-age startups. Employees across sectors are increasingly voicing their concerns, and while some companies are trying to make amends, many more need to take a hard look at their internal cultures before the damage becomes irreversible
This constant pressure to meet unattainable goals, combined with a lack of job security, creates an unhealthy work environment across sectors, whether multinational or domestic. Toxic work culture is, unfortunately, a phenomenon that knows no borders, and both global giants and local firms are increasingly being called out for their practices.
As investigations into Piaggio unfold, it’s clear that toxic workplaces are a much larger issue. It’s time for organizations—whether MNCs or Indian companies—to reevaluate their internal cultures before more lives are upended in the pursuit of profit.
Thus, the answer to whether toxic work culture is a phenomenon exclusive to multinational corporations is a resounding no. In fact, some of the worst instances are found within Indian companies, cutting across various sectors, from banking to tech to startups.
