NetSol Technologies, Pakistan’s largest software house, has announced a 20-30pc cut in salaries across the board and has laid off several employees.
According to a media report, the decision was taken to reduce costs in the wake of coronavirus crisis.
“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 Rs150,000. A very limited number of resources making less than Rs150,000 might get a salary cut as well,” stated the company in an internal email sent to employees.
However, salaries for the month of March would remain unchanged.
The email also noted that the senior management team, across all the regions, had already indured a large pay cut and has asked each division on what can be done to reduce the costs with minimal impact on delivery capabilities.
Meanwhile, employees believe that if the company is going for a pay cut, it should also reduce their working hours by 20 to 30pc.
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 would be evident in the upcoming third and fourth quarters.