The organised private sector in India is planning to have major job cuts/layoffs due to the coronavirus pandemic and lockdown that have significantly impacted the economic activities, says a report.
According to the latest results of MyHiringClub.com and Sarkari-Naukri.info Layoff Survey 2020, 68 per cent of the employers surveyed have either started the layoff process or are planning to.
The online survey covered 1,124 companies across 11 industry sectors in 25 major cities. The survey was conducted between May 1 to May 10, 2020.
Among the surveyed organizations, 73 per cent said they have plans to decrease the salary of employees, 57 per cent said this layoff is temporary, while 21 per cent said they are doing permanent layoffs for at least 2 years.
Interestingly, 32 per cent employers did not have any job cut/layoff plans.
"All industries are suffering in the current pandemic situation and the pain is now translating into layoff in every industry at every level. Companies are even cutting salaries of those employees whom they are planning to retain.
"This crisis is very much temporary and once companies come out of this, new job creation and hiring will surely start," said Rajesh Kumar, CEO, MyHiringClub.com & Sarkari-Naukri.info.
Kumar further said "industries like aviation, hospitality, travel, FMCG, retail, automobile & manufacturing will suffer more and will take longer duration to recover due to a halt in spending. Job cuts, salary reduction and business downfall are major reasons for spending less in the current situation."