Bajaj Auto resorts to cost cutting, deducts 10% salary till May 3

The Company is not considering laying off any employees right now


While many Indian companies are laying off their employees in the name of cost cutting, Bajaj Auto has announced a deduction of 10 per cent of its employees’ salaries in the wake of this pandemic.

The decision is said to have been taken in consultation with the employees, via the workers’ union. The move is expected to bring down fixed costs.

The HR department addressed the workforce in a letter, which stated, “Effective April 15, we are deliberating implementing a pay reduction in monthly fixed gross across all levels, until the lockdown is lifted. Our managing director has taken the lead and decided that should this be implemented, he will not be taking any pay during this period”.

The e-mail drew the attention of the employees to the fact that unlike other companies that have resorted to reducing jobs, cutting pay, freezing capex, reducing marketing budgets and taking drastic steps to stay afloat, Bajaj Auto does not need to take any such extreme measures. However, “…we do need to be prudent and take measured steps to control our fixed operating costs urgently,” explained the mail.

The Company claims that in such a crisis-like situation, this was the best way for it to protect the employees, help them retain their jobs and ensure that they sustain minimum impact due to the crisis. Though the organisation has been mostly empathetic towards its employees, the deduction of salaries in order to save jobs, was the need of the hour, and hence, inevitable. The Company has also assured that the situation will be regularly reviewed.


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