IT company Tech Mahindra recently announced that it is putting a hold on incentives and wage hikes amid the coronavirus pandemic. As the coronavirus outbreak disrupts operations worldwide, the company is not looking at any clarity on business.
However, the company said that its junior associates will still get their full remuneration packages.
Talking to the media while announcing the company quarterly results, CEO CP Gurnani said that the company has taken a conscious decision that junior associates will get their full package.
“The cut was taken by middle and senior management,” he said.
Meanwhile, the CEO also assured that there are no plans to layoff any employees 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.
Tech Mahindra reported a fall of 29% in profits at ₹803.9Cr. For the financial year ending in March (2020-21), Tech Mahindra reported consolidated profits of ₹4033Cr, while, for the quarter ending in December, the consolidated profit was ₹1145Cr.
Around 90% of employees in Tech Mahindra are working from home as of now, as the CEO described this as a “tough quarter”. Utilization has come down as well due to the pandemic.
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.
As of now, Tech Mahindra employs 1,25,236 staff, which is 4.3% less than last quarter.
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