Covid-19 impact: Firms try to save jobs and their future through pay cuts

Several slash pays by up to 40% for May

Chief executive officers (CEOs) of Indian companies are facing a Hobson’s choice, which is cutting salaries. As cash flows remain blocked for the eight consecutive week due to the lockdown, they are under pressure to either cut salaries or risk the future of their companies.
 

While several large-sized conglomerates including the Aditya Birla, Essar, and JSW groups have resisted any salary cuts to date, many mid-sized companies have done so.
 

But at the same time, in their communication to employees, CEOs have promised to restore the cuts when cash flows improved.
 

“The priority is to preserve jobs,” said Kamal Khetan,