Around 20 executives have written a letter to the CEO and chief people officer of the company, intimating their decision to take a pay cut ranging from 10 per cent to 20 per cent.
The recent slowdown in the IT industry has disturbed the balance of companies in the sector. They are taking different actions to deal with this slowdown— which includes salary cuts, deferred salary hikes and layoffs of employees—in a better manner.
Tech Mahindra’s performance has not been good in the past few quarters, and therefore, its top executives have decided to take a pay cut. Around 20 executives have written a letter to the CEO and chief people officer of the company, intimating their decision to take a pay cut ranging from 10 per cent to 20 per cent.
This move is unusual because, generally, it is seen that the employees in the lower ranks bear the burden of such poor performance, in terms of layoffs or pay cuts. However, the top executives coming forward with such an offer, clearly indicates that they are committed to the company and believe in it.
The management of the company welcomed and appreciated their decision to take a salary cut. Their salaries will be restored once the company starts performing well and regains stability.
Earlier, the company deferred the salary hikes of 500 executives of VP level and above, due to the slow performance of the firm. Also, it cut down its total workforce by 1500 recently.
The slowdown in the IT industry and the technological disruption has led many organisations to lay off their employees or put off their salary hike. These IT companies are not updated with the latest technology and are losing their clients, who are opting for other updated companies possessing the latest technology solutions to their problems.
In the recent past, many companies, such as Infosys and Cognizant postponed the salary increments of top executives and reduced their total workforce.