NetSol Technologies Pakistan has announced that it will cut 20-30 percent of salaries across the board and will be able to lay off staff as Pakistan’s largest software house attempts to save on coronavirus weathering costs.
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 the 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.
In this case, however, wages from March will be unchanged. With an impact from April’s pay, the workers will see the compensation increase.
The email also noted that a significant pay cut has already been made by the senior management team in all regions and asked each division what can be done to reduce costs with minimal effect on production capacity.
The organization will also cut working hours by 20 to 30 percent if the payout is decreased, workers mentioned.
According to an internal document from a client, COVID-19 has fully inhibited the ability of NetSol to win some form of new business in the near to mid-term and the impact is already evident in the upcoming third and fourth quarters.
Netsol Technologies Pakistan predicts that the top-line figures will drop by an average of 30 percent in the next 12 months with substantial losses in the bottom line.
