Tech Mahindra Cancels All Increments, Cuts Salaries; But No Employee Will Be Fired
India’s leading IT service provider Tech Mahindra has announced that all increments and bonuses have been put to hold, as they have reported a massive 29% less profits due to the coronavirus impact.
However, Tech Mahindra has confirmed that no employee will be fired as of now.
Tech Mahindra Cancels Increments, Cut Salaries
Tech Mahindra CEO CP Gurnani, while announcing their financial results yesterday informed that the company is canceling all increments and bonuses this year, for all the employees.
Besides, undisclosed salary cuts too have been announced, for senior and mid-level management.
CEO confirmed that no salary cuts have been imposed for junior level executives presently.
Besides, not even a single employee will be fired, due to the coronavirus impact.
However, in future, employees can be asked to leave.
On the issue of layoffs, he said, “Unless there is a natural situation where particular line of business has to be closed I am not looking at anything that is not in the interest of employees or the society,”
Tech Mahindra Q4 Profits Fell By 29%
For the quarter ending in March, Tech Mahindra disclosed a fall of 29% in consolidated profits at Rs 803.9 crore.
For the financial year ending in March (2020-21), Tech Mahindra reported consolidated profits of Rs 4033 crore, while, for the quarter ending in December, the consolidated profit was Rs 1145 crore.
Overall revenues for the March quarter increased by 6.72% to Rs 9,490 crore, while operating margin reduced by 4% to reach 14.2%, which as 16.2% a quarter back.
Around 90% of employees in Tech Mahindra are working from home as of now, as the CEO described this as “tough quarter”
As of now, Tech Mahindra employs 1,25,236 staff, which is 4.3% less than last quarter.
We will keep you updated, as more details come in.