Like many other media companies in the present economic scenario, CyberMedia, too, is walking down the manpower cost rationalisation road. The company has formulated revised compensation packages, where the cost to company for all employees would be brought down. The changes, which vary depending on which grade an employee is in, would be applicable from April 2009.
Pradeep Gupta, Chairman and Managing Director, CyberMedia, informed about this development to all employees in an internal circular sent out on March 20, 2009. In his mail, Gupta had elaborated on the cost rationalisation measures that the company had undertaken since 2007.
He added, “However, it appears that a tighter belt is needed. After the evaluation of the budgets for the year 2009-10, and an assessment of the economic scenario, it is certain that there is a need for further control of costs. It is now necessary to manage our manpower costs, which constitute almost 20 percent of our total expenses.”
Some of the measures that the company is undertaking would see the bonus being payable at the rate of 8.33 percent of the basic pay. This will be applicable for all levels. The cost to company would, therefore, come down by that amount. This revised CTC will be then adjusted downwards by 15 percent for Directors, 10 per cent for levels between seven and 11, and 5 percent for levels between three and six.
There will be no change for levels one and two.
Gupta further stated: “We are retaining the PBRS schemes, but with a payable amount which is two-third of the present scheme. This is applicable from H2 2008-09. For promotions, there would be an increase of 3 percent. For each salary adjustment – to be given in exceptional cases – the figure would be 2 percent.”
In addition to this, Gupta said, “We hope that with these changes we will be able to manage the present tough times. The key of course would be achievement of the top-line and bottom-line numbers that have been planned for the next year.”