Emaar Properties, Dubai’s largest listed developer, announced pay cut for its staff. The company’s chairman has taken a 100 per cent salary cut from April 1.
The company has announced salary cut of 50 per cent for the senior management, 40 per cent for middle management and 30 per cent for junior employees.
Emaar operates in the country. It has corporate office in Gurugram and residential properties in Agra, Lucknow, Delhi, Chennai and others .Earlier, the company had a joint venture with Delhi-based MGF.Read our full coverage on Coronavirus
Despite the grim business outlook owing to the global spread of coronavirus (Covid-19), Indian information technology (IT) services firms are unlikely to resort to any major staff retrenchment, given the sensitivity of the issue.
Though this approach is in line with big US firms such as Salesforce and Morgan Stanley, whose chief executive officers have taken the public stand of not laying off employees, Indian IT firms, however, are not expected to take such a pledge publicly. This is primarily because unlike many US firms, Indian IT firms never had any layoff policy owing to its political sensitivities though employee retrenchment due to “under performance” is common.
Globally, the chief executive officers of prominent companies such as Salesforce, Visa, Morgan Stanley, Citigroup, Bank of America, and FedEx have taken the pledge not to pursue any significant layoffs in 2020.
Even Cognizant, which has Indian roots with 65 per cent of its employees in India, has announced paying an additional 25 per cent of the basic pay to most of its staffers in India.
“Indian IT services firms are not likely to take any public stand on layoffs like many US firms. But firing staffers owing to business disruption and consequent demand slowdown is not likely to happen in big way,” said a source familiar with the thought process. “Increments, bonuses, and variable payouts are going to be on hold for the middle and senior managements.”
Many large corporations, including Bajaj Auto, the Vedanta group, and the Essar group have stated not to reduce their headcount.
As far as Indian IT services firms are concerned, 55-60 per cent of their operating expenses comprise wages. So, any decision not to reduce the staff base can adversely impact their cost structure.
Current Affairs
The BBC has said that plans to "modernize" the British telecaster's newsroom will prompt the loss of an expected 450 employments. The slices speak to a significant hit to the national open assistance telecaster, which has gained notoriety for top notch news and amusement programs.
BBC News utilizes around 6,000 individuals, including 1,700 outside the UK, as indicated by an article about the activity cuts on its site. Fran Unsworth, BBC's executive of news and current undertakings, said the streamlining will be completed with an eye on computerized news coverage.
"We have to reshape BBC News for the following decade in a manner which sets aside significant measures of cash," Unsworth said on Wednesday. "We are spending a lot of our assets on conventional straight communicating and insufficient on computerized." The supporter said it needs to "decrease duplication" while sparing 80 million pounds ($105 million) in costs.
Like customary news outlets all through the world, the openly supported BBC faces money related and political weight in a quick changing media scene. The two supporters and pundits of Brexit have censured BBC's inclusion of the UK's approaching takeoff from the European Union. A few authorities in Prime Minister Boris Johnson's Conservative government have proposed changing the BBC's financing model.
The telecaster as of now is financed generally through a 154 pound (USD 200) yearly charge paid by each family with a TV. It isn't state-controlled, despite the fact that the administration sets the conditions of the supporter's sanction, which is restored once every decade. The telecaster additionally got negative inclusion over the pay rates of some in the news division that were viewed as excessively high and for a hole between what the BBC's ladies writers made contrasted with male partners...Read More
