MindTree to cut 15 p.c salary of 200 R&D staff

BANGALORE, INDIA: Bangalore-based IT solutions company MindTree said that there will be a cut of 15 per cent in the salary of around 200 employees in the research and development (R&D) division of the organization, which has a headcount of over 7500.

A company spokesperson said the cut would be applicable from August 1, 2009 and it would affect only those who have no project for the last one month. He said there are nearly 200 employees, who have no project for the last one month.

He also clarified that the salary cut is for a short-term and it would be restored once the employee gets assigned to a project or the utilization levels cross the threshold of 65 per cent. He said a nominal salary cut like this was better than measures like layoffs, across-the-board pay cuts or putting people on the 'virtual pool'.

Though the company had posted a net profit of Rs 567.3 million for the quarter ended June 30, 2009, it cut its FY10 outlook on "highly uncertain" market environment due to the global economic slowdown.