As part of cost cutting-measures to tackle the global economic downturn, IT major TCS today said job-cuts are possible if the situation worsens, but said there are no immediate plans for lay-offs.
The company has, however, ruled out salary hikes next year and frozen “lateral intake” besides increasing weekly working hours for employees.
TCS managing director S Ramadorai said “there would be no hike in salaries in the forthcoming year” and added that “job cuts are possible if the situation worsens”. He added that the company is reviewing variable pay components of the staff salaries. The variable pay component of TCS employees differs between 22 per cent and 35 per cent of his/her gross salary, depending on an employee’s rank, he said.
Variable pay represents 8 per cent of the total revenue of TCS, whose headcount is 1.4 lakh. “We have around 1,40,000 on our payroll. On an average, 20-35 per cent of an employee’s gross yearly salary is the variable pay component,” said Global Human Resources vice president Ajayendra Mukherjee.
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