Coronavirus cases continue to spike: Live updates
Among them are SAP, Morgan Stanley, Salesforce, Palo Alto Networks, PayPal, Citigroup, JP Morgan, Bank of America and Booz Allen Hamilton.
A JP Morgan India spokesperson said the firm recognises its people are critical to its success. “That is why we are consciously making decisions designed to prevent any new layoffs as a result of Covid-19, including significantly reducing hiring – in many cases stopping it completely – and working with local governments and officials,” the spokesperson said. Sources have previously told TOI that JP Morgan has 34,000 employees in India, its largest workforce outside the US.
SAP said it is committed to not making significant layoffs for 90 days. “We have our valued employees in our hearts and want to assure them that we have their backs as we deal with this health crisis now,” a company spokesperson said. SAP India is estimated to have around 13,000 employees in India.
Morgan Stanley CEO James Gorman was quoted in the US media as saying that employees’ jobs would be safe this year. It has 3,300 technologists in India. Salesforce CEO Marc Benioff has pledged to do no significant layoffs for 90 days, Booz Allen Hamilton till July 1.
Palo Alto Networks CEO Nikesh Arora tweeted his commitment to no Covid-related layoffs “to allay concerns of our employees.” The company has over 7,000 people in California, Tel Aviv and India.
Arora tweeted about setting up a Covid Relief Fund. He said the company’s management and board would contribute $4 million. He also said the company would give four times the amount employees contribute. “Foregoing salary to contribute,” he tweeted.
Today we announced a COVID Relief Fund – seed contribution from our mgmt, the board, the company and me of 4M+ – we… https://t.co/4QCahfZBbT
— Nikesh Arora (@nikesharora) 1585671361000
Most companies have seen a dramatic reduction in business because of lockdowns around the world. That affects revenue immediately, but companies have to continue paying their workforces even though there is less work, and less profit.
Vijay Govindarajan, Coxe distinguished professor at Tuck at Dartmouth, said he is a firm believer in free markets and the process of creative destruction where weaker and inefficient firms fail, resulting in layoffs in those firms. But the current situation, he indicated, was different – a result of sensible government-mandated lockdowns. “Large companies like Google, Amazon, and Walmart must take the no-coronavirus layoff pledge and use their reserves to continue to pay employees, say, 75% of the salary and guarantee full health benefits,” he said.
More on Covid-19
Some companies are offering Covid leave, while others have set up funds to tackle the pandemic.Tata-Starbucks said that any of its employees diagnosed with Covid-19 would be granted paid leave until they recover fully and are medically cleared to return to work. And employees who need to self-quarantine will be granted an additional 14 days paid leave.
Goldman Sachs will offer 10 days of `Covid-19 Family Leave’ to employees globally to care for family members, as needed, due to Covid-19 related illness or childcare needs. “This leave applies for 2020. This will be in addition to the existing leave policies offered by the firm,” said Bentley de Beyer, global head of human capital management at Goldman Sachs.
Booz Allen Hamilton has announced a pandemic resilience programme of more than $100 million to support its 27,000 employees and the communities where they live and work.
Like Cognizant, cloud ERP company Workday has approved a one-time cash bonus equivalent to two weeks pay for each employee of Workday and its subsidiaries, excluding those serving at the level of vice president and above. The bonus is expected to add up to about $80 million.