Reliance cuts employees' salary by 10-50%; Ambani to forgo entire salary

With coronavirus lockdown hitting businesses hard, India's largest company Reliance Industries has decided to cut the salary of most of its employees by 10 to 50 per cent with firm's chairman and richest Indian Mukesh Ambani agreeing to forgo all his remuneration.

Also, the oil-to-technology conglomerate has deferred annual cash bonus and performance-linked incentives that are normally paid in the first quarter, according to an employee communique.

The nationwide lockdown that began on March 25 had led to evaporation of demand as factories shut down, offices closed, air flights suspended, trains stopped and restrictions on the movement of people and goods placed.

Reliance's hydrocarbon business was adversely impacted due to a reduction in demand for refined products and petrochemicals.

The company's different vertical heads wrote to their employees about the salary cut decision.

"This has, of course, put pressure on our hydrocarbons business necessitating optimisation and cost reduction across all fronts," it said. "The situation demands that we maintain a razor-sharp focus on operating costs and fixed costs and all of us need to contribute to making this happen."