Amid the COVID-19 outbreak and hard times that the country is facing, Tata Sons has initiated pay cuts as part of a cost saving.
As per CNBC-TV18, the salary cuts are ranging approximately from 15 to 20 percent. Also, the salary cut is only for senior roles, vice-president level and above across Tata Sons and the group companies.
"Tata Sons does not want the pay cuts to impact employees at the mid to junior level and they definitely want to save any impact on jobs. Salary cuts at the top level will not only save a significant amount of capital but will also reduce the impact on junior employees in a lower salary bracket;" said a source to CNBC-TV18 team.
"Tata Sons has been working at cost optimising and creating synergies across the group even before the COVID 19 pandemic. What the pay cuts will do is give them a lever to be able to steer the company through this period. But the pay cuts will be just one of the measures. Cut in travel, reduced operating expenses and monetising costs are being looked at to ensure the pressure on the balance sheet is reduced," said another source to the media house.
This pay cut will vary across group companies. Below are the names:
- At Tata Sons, the pay cut is between 15-20 percent which is the same for IT major Tata Consultancy Services as well.
- At Tata Chemicals, Tata Global Beverages and Indian Hotels the cut is up to 20 percent
- At Tata Steel and Tata Motors the cut could be as high as 25 percent. While, the cut at Tata Power is said to be between 15-25 percent.
So far, the company Tata Sons declined to comment on the pay cut.
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