Due to COVID-19, Lockdown, Tata Group may cut the salaries of employees at some companies.

On May 11, 2020, Tata Group is very famous and it is the country’s largest conglomerate, it considering their losses due to COVID-19 pandemic, Lockdown and plans to cut the salaries of employees at some of its companies because in some companies their revenues drop and it hurts their businesses.

For protection the citizen against COVID-19, government took many steps, related to businesses, taxes, loans, transportation and also imposed restrictions on them and by all this restrictions like travel ban, which majorly hurts some of the Tata Group of companies like Indian Hotels (Taj), Tata SIA Airlines (Vistara) and Tata Motors and their revenues highly drop and some companies which produce non-essential products, their production shutdowns. These are the companies who faces a highly drop in their revenues but there are some other companies like Tata Power and Tata Communications, it benefited as people are stay-at home for their safety, so they are demanded for electricity to operate the electric appliances for passes their time and internet and these are the most essential for the people’s life, now a days.

Taj Mahal Palace in Mumbai, which owns by Indian Hotels of Tata Group and the country’s first luxury hotel and its senior leadership, said that we will contribute a percentage of their salary this quarter to help with the survival phase of the company. CEO, Puneet Chhatwal said to the employees through email that “We will need to continue evaluating this month-on-month and take some tough decisions as the situation evolves” and he also said that the situation is not in our control because we are going through the financial critical situation due to revenues drop and the businesses were stopped. So, we are planning for managing the damages by hiring freeze and other cost optimization measures.

Tata Group cuts the salaries to manage and protect the cash balance during the economic drop.