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Parsvnath to fire under-performers

From the air, the fall has now reached the ground. After the Jet layoff drama, realty major Parsvnath has now decided to sack employees.

business Updated: Oct 25, 2008 01:13 IST
HT Correspondent

From the air, the fall has now reached the ground.

After the Jet layoff drama, realty major Parsvnath has now decided to sack employees.

In addition, the company also plans a 15-20 per cent salary cuts across the board, as demand for houses has gone down by 40-50 per cent during this Diwali season.

Parsvnath currently has 1,400 employees and is the third largest real estate company in terms of its land banks, after DLF and Unitech.

“Non-performers (staff) will have to go away after Diwali…(as part of) cost-cutting measures,” said Pradeep Jain, chairman, Parsvnath Developers.

“The company is yet to estimate the number of employees to be sacked. Cost cutting measure will start in next 15-30 days, after the festive season. It has to be at all levels.”

On the other hand, Unitech Managing Director Sanjay Chandra said the company, which had given an increment of 15-16 per cent in June, does not plan a second round of salary raises.

This, he added, is the only employee-related cost-cutting the company will do. “Our major cost-cutting will be on the manufacturing side, that is cement and steel consumption,” he said.

Jain — echoing the industry’s demand for further ease in liquidity and interest rates — said: “We want cuts in CRR (cash reserve ratio, or the money banks have to keep as cash with Reserve Bank of India) and repo rate (rate at which RBI lends to commercial banks) by 200 basis points each,” Jain said.