Results show companies cutting employee costs as coronavirus hurts recovery

June indicates a change in trend from previous quarters in terms of how much companies are spending on employees

The June quarter results reflect sharp cuts in employee costs as companies grapple with the economic impact of the Covid-19 pandemic.

A total of 129 firms out of a sample of 217 cut employee costs in the June quarter, shows a Business Standard analysis of Capitaline data. The number was higher than the quarters before, shows data going back to March 2019. Each of the preceding quarters showed an increase in overall employee costs, suggesting that some companies had spent more on employees even as others cut back, resulting in an aggregate gain. The June quarter showed a break in