NetSol Technologies has announced to cut off 20-30% of the salaries across the board and has laid off several employees as Pakistan’s largest software house attempts to save costs to weather the coronavirus crisis.
An internal email sent to employees, also seen by ProPakistani stated,
In order for the company to stay relevant, the management has decided to reduce the company’s expenses, effective from 1st of April, 2020. It will be implementing a pay cut on employees making more than Rs. 150,000. A very limited number of resources making less than Rs. 150,000 might get a salary cut as well, noted the company.
However, March salaries will be unchanged in this scenario. The employees will see the salary change with effect from April’s salary.
The email also noted that the senior management team, across all the regions, already took a large pay cut and has asked each division on what can be done to reduce the costs with minimal impact on delivery capabilities.
The company should also reduce work hours by 20 to 30% when they are reducing the payout, employees noted.
According to a company’s internal document, COVID-19 has completely inhibited NetSol’s ability to win any kind of new business in the near to mid-term and the effect is already evident in the upcoming third and fourth quarters. The company estimates that their top-line numbers will be down by 30% on average over the next 12-months with significant bottom-line losses.