The pandemic Coronavirus has slowed down economies all over the world, leaving many people jobless and with huge paycuts in their salaries. According to Times of India, a survery conducted by Vadodara-based human resources consultancy firm, NamanHR, has concluded that at least 51% Indian companies will have to freeze hiring for a period of six months
Based on the survey which covered over 200 corporate houses in India, the number will go up to 65% by mid-May. The survey covered all industries like engineering, manufacturing, pharmaceuticals, oil and gas, infrastructure, chemicals, services and EPC sectors.?
Samir Parikh, founder, Naman HR said, "Declining revenues due to disruption of the cash flow cycle during the lockdown coupled with weak projections is driving companies to freeze recruitment. At this point, some 32% companies are looking at a headcount reduction, mainly in the engineering and manufacturing sectors. However, downsizing is also expected in pharma and chemicals sector where 15% of companies are mulling over headcount reductions and 20% in the services sector are looking at layoffs."?
Parikh also added that companies are looking at downsizing by between 4% and 25%. He said, “The trend in Gujarat’s companies is also in line with those of India. As far as payment of salaries and incentives are concerned, roughly 32% of engineering and manufacturing companies are considering slashing salaries, while 25% services sector companies and 8% of pharma firms will also consider paycuts."?
The economy will face tough times ahead and it is still unknown how it will bounce back.?