COVID-19 Blues: Private Companies Planning To Hand Over Pink Slips To Employees, Deduct Salaries

New Delhi: With the coronavirus pandemic and resultant lockdown taking a heavy toll on the national economy, private companies are planning to hand over pink slips to their employees.

Around 1,124 companies across 11 industry sectors were surveyed by and from May 1 to May 10, 2020.

According to the Layoff Survey 2020 report, around 68 per cent of the private companies have either started the laying off process or are mulling to do so in near future.

While 57 per cent of those companies claimed that the layoff is temporary, 21 per cent said the decision will be in force for at least 2 years. Similarly, around 73 per cent of the private sectors are planning to deduct the salaries of their employees.

On the brighter side, 32 per cent of the companies are not resorting to such drastic measures.

CEO of &, Rajesh Kumar said, “All industries are suffering in the current situation and the pain is now translating into layoff in every industry at every level. Companies are even cutting salaries of those employees whom they are planning to retain. This crisis is very much temporary and once companies come out of this, new job creation and hiring will surely start.”

“Industries like aviation, hospitality, travel, FMCG, retail, automobile & manufacturing will suffer more and will take longer period to recover due to a halt in spending. Job cuts, salary reduction and business downfall are major reasons for spending less in the current situation,” he added.

According to the survey, the highest percent of layoff is in Retail & FMCG sector (49 per cent), followed by Hospitality/Aviation/Travel (48 per cent), Automobile/Manufacturing & Engineering (41 per cent), Real Estate (39 per cent), Power (38 per cent).

Employees with work experience of 6-10 years are likely to witness highest number of layoff, followed by employees with experience of 11-15 years.

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