Tech Mahindra puts wage hikes and incentives on hold, but says no layoffs.
Tech Mahindra is putting on hold incentives and wage hikes until there is more clarity on business as the coronavirus outbreak has disrupted operations worldwide. However, its junior associates will get their remuneration packages in full.
Besides, undisclosed salary cuts also have been announced, for senior and mid-level management. CEO confirmed that no salary cuts have been imposed for junior-level executives presently.
CP Gurnani, CEO, Tech Mahindra said, “the company has taken a conscious decision that junior associates will get the full package. The cut was taken by middle and senior management.”
“Unless there is a natural situation where a 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,” he said.
The company employs close to 1,25,236 people, down by 4.3 percent compared to the previous quarter. Utilisation has come down as well due to the pandemic. Close to 93 percent of the employees are working from home. However, in the case of business process outsourcing, it took longer since due to delay in client permissions, especially Europe and New Zealand where data privacy laws were stringent.
For the quarter ending in March, Tech Mahindra disclosed a fall of 29% in consolidated profits at Rs 803.9 crore and reported consolidated profits of Rs 4033 crore, while, for the quarter ending in December, the consolidated profit was Rs 1145 crore.
Around 90% of employees in Tech Mahindra are working from home as of now, as the CEO described this as “tough quarter”
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