Amid a nationwide lockdown to slow the spread of covid-19, companies are reworking cost structures to survive, as remote work and lower discretionary spending have become the new normal.
Companies in the worst-hit sectors such as aviation and hospitality have announced immediate pay cuts. IndiGo, India’s most profitable airline, was the first to announce a 25% cut in senior staff pay.
Rival airlines SpiceJet and GoAir too have announced similar pay cuts. GoAir has retrenched its entire workforce of expat pilots, who are considered expensive.
It has also introduced leave without pay and up to 50% pay cut for its top leadership. On Thursday, SoftBank-funded budget hotel chain Oyo reduced salaries for senior and top-level executives.