The severe financial crisis has forced almost all companies to adopt various cost-cutting strategies. We begin a new series where we outline the measures undertaken by different companies.
Here, rediff.com readers tell us what is happening in their organisation. And we invite you to contribute.
Tour budgets slashed
I am now working in Alphia Institute of Business Management under ICFAI, Tripura University. As a cost-cutting measure, the organisation has implemented some kind of measures:
1. Stopped all research centres of ICFAI, subsequently 400 jobs had been lost in a night.
2. Tour cost has been cut and down to lower category, i.e. from AC II-tier to sleeper class, room rent from Rs 1,100 to Rs 400.
3. All variable cost has been reduced.
4. Strict about attendance and leave.
Jobs, salary cut
Our company has always been on a shoe-string budget. Hardly anything was ever spent on employee welfare. There are no benefits available to employees. We only get consolidated salary which barely meets the needs of the persons working in this company. Now, the management is talking of cutting salary and delaying payment of salary.
In India, a large number of industries/ offices/ companies are in the unorganised sector where salaries are low. Our successive governments have not done anything for this sector.
There may/ may not be any effect of the global economy slowdown in this sectors, but employees are constantly kept under fear of being fired.
An employee is asked to leave/ is fired with just last one month salary after working sincerely for many years without any provident fund or gratuity or any other payment (since he was paid bare minimum salary, there is no saving in the bank or any investment).
Forced to resign
I just wanted to say what I suffered in my current company that is ITC Infotech, Bangalore.
Six months back, they recruited many people with good compensation, better than other companies. They were hoping some projects would come. But they did not get those projects and, in the end, they fired all lateral recruitment. They compelled us to leave or made us resign ourselves.
The point is that recession is going on and we know the condition is bad. But the point is why did they hire so many people before getting the projects?
At the time of laying us off, the manager said we know you are skilled and experienced. There is no performance issue but 'we have to say goodbye to some people.' This is foolish. They spoilt our careers because now no hiring is going on and we all are jobless.
Second point, they recruited many freshers too 2-3 times in a year and laid off all the freshers as well. Their career vanished right at the starting point.
According to policy, the notice period is three months after resignation. But they are giving only one month or, in some cases, three days. They are not even ready for leave without pay for a long duration.
They are not in favour of the employees. I have seen they are not laying off those people who are less performing because they do chamchagiri and butter up their managers.
Also see: How Infosys is cutting costs
Is your company cutting costs?
How is your company coping with the financial crisis? What are the cost-cutting measures that have been implemented? How has it affected employee morale?
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