Textile and apparel manufacturer Raymond has recently laid off about hundreds of employees across departments in a cost-cutting drive amid coronavirus pandemic.
According to a Business Insider report based on a viral Reddit blog post, the layoffs began as early as February as the group debt was already too high and a slowing economy was squeezing the cash flow. The COVID-19 crisis only made it worse for the Gautam Singhania-led company.
In the social media stir, many of the laid off employees are even complaining that they haven’t received their promised severance pay. According to the blog post, the laid off employees make about 15% of the total 7,087 employee strong workforce. It is believed that about 1,100 employees have been impacted because of the layoffs.
However, a spokesperson for Raymond said that it was “incorrect” and “based on speculation.” Even while admitting to “cost cutting measures,” the company did not reveal the total layoffs so far.
Earlier last month, Raymond Chairman Gautam Singhania had issued a video statement on Youtube warning his employees of “tough decisions” that the company might have taken or will take. But upon searching for it now we found it to be made private.
One of the fired employees told the news website that they were forced to resign with a promise of getting a three months salary. However, the employee claimed that the company has paid full salary for only March month and just the basic salary for April month.
The estranged employees have also claimed that even after their various attempts to reach out to the Human Resources Department of the company, they didn’t get any assurance. However, Raymond has denied this charge saying, “all the employees received the salary for the month of March in April without any delay.”
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