First time in the history of the country, the Tata group has started deducting the salary of their employees amid loss due to COVID-19. Tata Sons has started cutting the salaries of employees to reduce costs. CNBC-TV18 reported that Tata Sons business has been affected by the outbreak of Coronavirus. The report says that the salaries of senior employees, vice-president levels and above, from Tata Sons and Tata Group companies, have started cutting by 15 to 20 percent. The report states that the Tata group will take measures to optimize costs. Explain that the company is taking these steps to make up for the damage caused by the corona virus epidemic. For the first time in its history, Tata Group is making a cut of around 20% in the salary of Tata Sons chairman and all CEOs of subsidiaries.
Tata Sons declined to comment on cost optimization in the group when contacted by CNBC-TV18. The companies of Individual Group have not yet responded. According to CNBC-TV18, the salary cut at Tata Consultancy Services (TCS) is expected to be around 15-20 percent. At the same time, there is a possibility of 20 percent reduction in salary of Tata Chemicals, Tata Consumer and Indian Hotels- IHCL.
The report said that there could be a 25 per cent reduction in senior management of Tata Steel and Tata Motors. The pay cut applies to the base salary for 2020-21 and components related to compensation performance will not be affected.
The pay cut comes a day after Tata Motors owner Jaguar Land Rover’s owner Tata Motors released its March 2020 quarterly results. In the quarter ended March 2020, Tata Motors lost Rs 9,894.25 crore. The company had a profit of Rs 1,117.5 crore in the March 2019 quarter and Rs 1,738.3 crore in the third quarter of FY 2020.