MindTree to cut 15pc pay of R&D staff

Posted By: Staff
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Bangalore, Aug 7: Notwithstanding global economic slow down, Bangalore-based IT firm MindTree on Thursday, Aug 6 said it will cut salary by 15 pc of about 200 employees in the research and development (R&D) division.

MindTree Senior vice-president and global head, Puneet Jetli said, "The utilisation levels had fallen below 60 per cent and hence the decision to cut salary by 15 per cent was taken. This would be applicable on employees in the R&D services, who are neither on an customer-approved project nor on an internally-approved project,"

He also said, "The cut would be applicable from Aug 1, 2009, and affect about 150-200 people."

"This salary cut is, however, for a short-term. The salaries will be restored if the employee gets assigned to a customer project or the utilisation levels cross the threshold of 65 per cent," Jetli said.

"Selective pay cut was better than measures like layoffs, across-the-board pay cuts or putting people on the virtual pool," he added.

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