Sterlite Technologies Limited, a leading Indian optic fibre cable manufacturer headquartered in Pune, has implemented salary cuts of 15% to 25% affecting almost half of its 3,500-strong employee base.
The decision, made due to challenging business conditions exacerbated by a lack of new orders, has put significant strain on the company.
The move comes after the company's reported restructuring in 2023, resulting in the departure of around 100 executives, including top-level positions.
According to an Economic Times report, Sterlite Technologies Limited (STL) initiated salary cuts after divesting from non-core businesses due to market dynamics. Facing financial strain, the company opted for cost-saving measures amid challenging conditions.
Reportedly, employees at the executive level, particularly in Band - 4 and above, were impacted by the salary reductions, causing widespread uncertainty among the workforce. While STL officially denied implementing pay cuts, it acknowledged restructuring compensation temporarily for mid to senior-level employees to adapt to the market.
STL's financial challenges are evident from its net debt of Rs 3,121 crore, prompting urgent cost optimization measures. Notably, top leadership, including Vice Chairman Pravin Agarwal and Managing Director Ankit Agarwal, received substantial salaries in 2023, highlighting the need for operational expense reassessment.