Hiring/Layoffs, Pay Cuts/Hikes: The Current Scenario!

The entire status quo has been disrupted by the recent Coronavirus pandemic. And, for companies across the globe, it’s not the fittest of all who survives, but the most flexible of all which will manage to survive.

Amidst all this, each company is finding different ways to keep its ship sailing, be it through pay cuts or through lay-offs. However, amidst this chaos, there are also companies which are pushing aggressively on fresh hiring and also giving a raise to their employees keeping their date with the appraisal season. It depends on whether you wish to see the glass half empty or half full. Let’s have a look at which company is doing what in this disruptive environment.

Pay cuts and Lay-offs

• Many media organizations such as The Times of India, Business Standard, News Nation etc. are laying off their staff to cope with the pandemic induced financial crisis. TOI closed down its Sunday Magazine department, whereas Business Standard has announced pay cuts for employees. News Nation has asked 14 of its employees to leave who were part of the English digital team.
• Airlines such as Air India too have suspended the contracts of its workers. Indigo Airlines had at the beginning of lockdown announced a pay cut for its senior management, pilots and crew. GoAir has laid off its ex-pat pilots. Air Deccan has put all its employees on a sabbatical without pay until further notice.
• Startups and small businesses are among the worst hit in times of the Coronavirus as they are struggling to pay high operating costs. A lot of big sized start ups such as Make My Trip, Cleartrip etc. have laid off employees. Other tech-based startups such as Droom, Rentomojo and Adda247 have also laid off employees. A lot of VC funded start up have had to resort to layoffs and salary cuts.

While this may paint a gloomy picture, there are many companies which have been able to tide through these tough times have been handing out salary hikes as well as hiring aggressively.

• As per a CNBC report, Amazon is among the top recruiters right now as there is a huge demand of warehouse and delivery workers (mainly in US). Many tech companies like Google, Facebook and Apple too are hiring in these tough times mainly for tech roles.
• Capgemini has rolled our salary hikes for its employees for this financial year. While the hike is single digit, but the same has been given to 70% of its employees in India. Cognizant too had earlier announces a pay hike for its employees.
• Companies which are doing well are also keeping their hiring targets intact for the new financial year. Some established companies such as HUL, Godrej, Pepsico, Biocon etc. have also committed to honour their offers made to college recruits and will be offering the position.

Every company will take a call based on their cash flow and the current business model. The idea will be to preserve cash and keep the business sustainable.

So, if you feel that the job market is turning gloomy, you just need to look at the right place. Brush up your skills and make yourself more relevant to the changing dynamics and the new normal.