English news channel NewsX has become the third mainstream news organization to effect structured, across-the-board salary cuts in the past three weeks, after NDTV Ltd and Bennett, Coleman & Co. Ltd. We reported this week that Mumbai-based newspaper DNA was cutting jobs, but not salaries. NewsX was recently bought by Indi Media Pvt Ltd–a company promoted by Nai Duniya owner Vinay Chajjlani and former Business World editor Jehangir Pocha–from INX Media Pvt Ltd, a media venture founded by former Star India CEO Peter Mukerjea and Indrani Mukerjea.
Yesterday, in a letter to employees, editor and part owner Pocha wrote: “…The degree to which NewsX’s cost structure is out of sync with reality and increasing severity of the downturn have forced us to make the difficult decision to reduce the compensation of all employees and contractors.” The full text of the email is below the fold.
NewsX has undertaken a graded cut under which those making below Rs50,000 a month (cost to company) will remain unaffected. The details of the graded cut are also below the fold.
We reported earlier this week that NewsX was about to undertake widespread costcutting measures.
From: Jehangir S. Pocha
Sent: Thursday, March 19, 2009 5:13 PM
To: INX News Users
Subject:
Dear all,
Ideally, I would have liked to have talked with each one of you about this matter, but our numbers and distance force me to use email.
As you know, the cost-cutting imperative at News X (and indeed the entire media industry) has grown stronger as the economic scenario has worsened. All of us have talked openly and honestly about this and all of you have been extremely understanding and cooperative in the many measures we have already taken to reduce the channel’s rather bloated cost structure.
As Vinay and I have repeatedly said, the goal was to cut as many operational costs as possible before undertaking any personnel related actions. Hence, we have all worked tirelessly over the last two months to reduce non-people-related costs. However, the degree to which News X’s cost structure is out of sync with reality and increasing severity of the downturn have forced us to make the difficult decision to reduce the compensation of all employees and contractors.
On the following page you will find details on the same. I know it is hard to face pay cuts when so many of you have been working with commitment and passion to build this channel. But I know you also realize it is not really us who are making the decision but the economy. It is setting new rules for business and survival in a market economy means listening to what the market says.
There are a few other things you should know. We have made every effort to keep these reductions at the lowest level possible. We have also structured them so they are fair – with the largest reductions falling on those with the largest earnings. The simple truth is that without making these reductions, which many other enterprises are also making in an effort to make their business models more sustainable, it would have been virtually impossible for News X to pursue the growth plans we have all discussed and which are so crucial to our future.
That is where we need to focus if we are to fulfill the ambition of giving this nation a fresh, fearless, and unbiased source of news. As we have discussed, while I have no doubt that while this downturn will constrain us, it will disrupt competitors even more. Thus, the chance to win and keep viewers has never been greater.
As committed professionals, that is the goal we should keep in our sights all the time. Every day I feel happy and proud of the work we all accomplish, often under trying circumstances. Though the hard times will continue for a while, I am certain that we will achieve our goal. In the end, that will make all the bumps in the journey to building this channel worthwhile and fruitful.
Sincerely,
Jehangir
With immediate effect following graded salary adjustments would be effected.
PARAMETERS* % OF REDUCTION
CTC greater than or equal to Rs. 300,000/- per month– 25%
CTC greater than or equal to Rs. 150,000/- per month but less than Rs. 300,000/- 20%
CTC greater than or equal to Rs. 100,000/- per month but less than Rs. 150,000/- 15%
CTC greater than or equal to Rs. 50,000/- per month but less than Rs. 100,000/- 10%
CTC less than Rs. 50,000/- 0%
* Specific adjustments would be ensured in borderline cases and it would be ensured that due to reductions, the CTC
Operational costs are considered as the number 1 burden in all companies. As a result, more companies find ways to minimize or if possible, to eliminate some of their unnecessary operational costs. Sadly to say, the salaries of those hardworking employees are usually the first target of every company in order to reduce their costs!
Mr. xbox repair,
I feel, companies are taking measures to reduce other operational costs, but they are not too vocal about it. Its always Salary Cuts which is spoken about.
a salary cut suddenly is really shocking decision for all those who earns lower salaries which is just near to a survial cost for them