An email regarding salary revisions shocked employees at The Times of India and The Economic Times, who are now expecting to see a second round of pay cuts. It is reported that some employees will be facing a 10-15 per cent salary cut compared to their 2017 earnings. While the first round of pay cuts was well informed through managers, it has been a shock to Bennett Coleman and Company (BCCL) employees this time around. The shock is said to have stemmed from the positive mail that the employees had received earlier in the year, from the chairman's office that had seemed hopeful towards achieving business goals and a positive turnaround. It even announced a payment of 100 per cent variable pay.
However, the recent email which came from the Chairman outlined how the first-quarter sales figures were unsatisfactory and accounting to the existing economic crisis, the company had decided that it would need to conserve its resources. Although, it was clarified that SPIP and target variable pay would still be available as they had been decided only earlier this year, in March 2021.
Reports suggest that BCCL has been hard-pressed financially even before the pandemic, which only amplified their losses. Reportedly, BCCL incurred a net loss of ₹ 451.63 crores at the end of March 2020 compared to the net profit of ₹ 484.27 in the previous fiscal.
The pay cut rides alongside other significant changes. After the curtains were closed on Times Life and Sunday ET magazine, many were given the pink slip over the last two to three months. Reportedly, some senior journalists have been given the option of either leave or have their contracts renewed. Whereas others have moved into consultant roles, with no employee benefits.