Tech Mahindra says no layoffs yet, puts wage hikes, incentives on hold

The company is also seeing reduction in discretionary spend and volumes as customers across sectors are bracing for the COVID-19 impact.

April 30, 2020 / 08:05 PM IST
 
 
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Tech Mahindra on April 30 announced it is putting on hold incentives and wage hikes till 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.

Speaking to media after the announcement of the results, CP Gurnani, CEO, said the company has taken a conscious decision that junior associates will get full package.

"The cut was taken by middle and senior management," he said.

Employees, say junior associates, they might or might not be able to take any cut given their cost of living and saving.

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However, he said there are no plans for layoffs yet.

"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," 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 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.

In terms of recovery, the company expects certain verticals to recover faster.

The company registered revenue of 5,181.9 million for the year ended FY20, up 4.3 percent year-on-year. However revenue declined by 3.3 percent on constant currency terms on a quarter-on-quarter basis to $1294.6 million due to COVID-19. The company is also seeing reduction in discretionary spend and volumes as customers across sectors are bracing for the COVID-19 impact.

"Due to COVID-19, 5G rollouts have been affected as well. However, as economy and business recover, 5G will get a boost as remote infrastructure and cloud are gaining traction," Gurnani added.
Moneycontrol News
first published: Apr 30, 2020 07:57 pm

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