NetSol Technologies has announced to cut off 20-30% of the salaries across the board and may lay off staff as Pakistan’s largest software house attempts to save costs to weather the coronavirus crisis.
An internal email sent to employees, also seen by ProPakistani stated,
In order for the company to stay relevant, the management has decided to reduce the company’s expenses, effective from 1st of April, 2020.
It will be implementing a pay cut on employees making more than Rs. 150,000. A very limited number of resources making less than Rs. 150,000 might get a salary cut as well, noted the company.
However, March salaries will be unchanged in this scenario. The employees will see the salary change with effect from April’s salary.
The email also noted that the senior management team, across all the regions, already took a large pay cut and has asked each division on what can be done to reduce the costs with minimal impact on delivery capabilities.
The company should also reduce work hours by 20 to 30% when they are reducing the payout, employees noted.
According to a company’s internal document, COVID-19 has completely inhibited NetSol’s ability to win any kind of new business in the near to mid-term and the effect is already evident in the upcoming third and fourth quarters.
The company estimates that their top-line numbers will be down by 30% on average over the next 12-months with significant bottom-line losses.
Update: An earlier version of the story said that the company laid off employees, however, as per the internal memo it stated that Netsol plans to reduce headcount.
this is highly disappointing. a massive company with millions in revenue Is cutting employee wages worth peanuts.
Very shameful act by Netsol. They make millions of dollars monthly and can’t provide a little relief to their workers during these disastrous times? Govt needs to take action against them.
Man you should check and recheck your algorithms when talking about revenues. A Pakistani based company making millions of $$$ on monthly bases? Even CyberNet doesn’t make that kind of crazy money. Let’s stick in millions of Pak Rs cuz that sounds about right. I’m just saying :)
My math is completely fine chief. This company reports yearly revenues of around 4-4.5 billion PKR. You divide that by 12 and do the math yourself. Even with current dollar rate it comes down to a little over $2m a month.
This company spends 58% of its revenue on its employees. What do you think should they spend it all? In a dire situation when a company scrambles they tend to lower down the most highly paid expenses in any given fiscal year, that’s exactly NetSol doing and people here are complaining. Make no mistake Pakistani software market still doesn’t make hand full of money as others do in Europe and US. India and Pakisran are still considered to be a cheap IT market that’s why countries from Europe and US tend to dispatch their IT needs to these Asian countries by not spending a lot of money locally. I wouldn’t be opposing their decision cutting down salaries (if the news is legit). 58% is hell lot of money to spend on its employees. I would suspect if their high ranking officers are being paid a big portion out of it.
On top of all that, this is a company that (due to the nature of its business) can simply have its employees work from home without a significant hit in revenue. You know, just like other software companies are doing all over the world.
Even if you talk in millions of PKR then Netsol consistently reports 300mil+ in revenues per quarter. Their earnings reports are right here on propakistani if you care to search.
I have their figures in hand and directly looking at ANNUAL REPORT 2019. Let’s talk now!!! Pinpoint me exactly where you are getting the number from you claimed in your comment.
I’m taking all the figures directly from the “reported figures” from NetSol so I wouldn’t think I should search these at ProPakistani.
I worked for this company for decade. They make billions. Not millions. They didnt bring their money back to Pakistan even. Just to avoid sharing the profit with stake holders. As they are public listed company. Their assets are 80% outside Pakistan.
This company spends 58% of its revenue on its employees. What do you think should they spend it all? In a dire situation when a company scrambles they tend to lower down the most highly paid expenses in any given fiscal year, that’s exactly NetSol doing and people here are complaining. Make no mistake Pakistani software market still doesn’t make hand full of money as others do in Europe and US. India and Pakisran are still considered to be a cheap IT market that’s why countries from Europe and US tend to dispatch their IT needs to these Asian countries by not spending a lot of money locally. I wouldn’t be opposing their decision cutting down salaries (if the news is legit). 58% is hell lot of money to spend on its employees. I would suspect if their high ranking officers are being paid a big portion out of it.
Very irresponsible reporting. Did you check with anyone from NetSol? Such false reporting is the last thing anyone needs in these tough times.
This news is correct. Contact me if you want to see details.
Its true brother. In such a time, companies should pay extra amount to cope up the situation but Netsol has decided to save its shareholders back instead of employees.
these Motivational speeches look good at the stage but running a company that is projected to go in loss in coming months this was a tough decision they need to make, go run a business pay your employees without having any work to give them and pay for the next 6 to 8 month without taking minimal or less work, you will automatically get the answer
Letter is produced as is.. no layoffs have been announced.l, I don’t think Netsol will be laying anyone off presently. Hoping situation improves otherwise not sure.. the last para of the article is problematic, i.e. ur opinion. Ure sneaky to use the letter and try establish corporate greed in ur ending opinion. Kindly check on annual and quarterly financial reports for netsol available on Nasdaq. Last few months China has been closed, and there’s much further uncertainty ahead.
As an associate of Netsol I have interpreted it positively, the last para of the Netsol email says it’s necessary so we can all survive this.l together. I’d gladly take the cut if it means keeping other bread earners onboard. I took that positively, and they could have also, that we are coming together as a community and have each others back.
Would be positive and inspiring to highlight this fact, and either produce the whole communication and not just part of it. If you have proof of millions of dollars of profits and wealth stacked away by company please share docs. It is a listed company so info is public.
I rarely write such replies but here we need to highlight positive examples instead of fear mongering that leads to herd-reaction.
Not fair, not true. Can you point to any proof for layoffs?
Also, this is reality , revenues are probably down 50% plus.
Very sad to see PP sensationalize this and technically do false reporting
leave your email here, i will send you the netsol HR email.
Netsol just signed a UK bank for next age retailer solution to use its NFS
Good
Its very alarming news.
Sure it is, Sad to hear the economy is falling like bricks.
False reporting
seriously, have you not seen the email that has netsol HR sent to their employee. leave your email here, i will forward that you.
[email protected]
plz send me netsl hr email. thanks
Mr. Salim Ghauri (CEO Netsol) denied this news already !
seriously, have you not seen the email that has netsol HR sent to their employee. leave your email here, i will forward that you.
This and many grandpa ISPs of Pakistan born when I was in my teens now 41. I still remember being a part of WOL (World Online) when it was first launched back in 2001 (Later became LinkdotNet I guess). Cyberaccess, Cubexs, Cybernet, NetSol, GemNet and Gerry’s Net are among those companies I could easily recall. This was a time when 14.6k to 33.6k modems were in used. I left the country when these companies transformed from Dialup to DSL and broadband Internet connections. NetSol used to be a floor based office somewhere at Shrahe Faisal but by looking at this current picture I am sure they have become giant IT company by now. I can say Pakistan has always been great in telecom industry comparing to India and other neighboring countries. Dr Atta Ur Rehman magnificently done a great job in early 2000s to boost telecom industry in Pakistan. So all the credit goes to him. Good Old Days!!
Sensationalized reporting and not to mention immoral and unethical leaks from employees under contract who haven’t received a pay cut yet and no lay offs have been made. People need to understand how businesses works. Try running a business and then talk, not to mention also provide for you employees medical expenses both for Inpatient and Outpatient ( including dental ), transportation, fuel expenses, support staff (security and Janitorial included) kids education in “English” medium schools and universities , Day Care facilities for female employees with kids, employee’s health safety, paying for support staff’s education and then including them in corporate work force, special opportunities for Disabled people including the mentally challenged ones, the list is long and all of that free of cost.
While the global economy is in a rapid downward spiral, things at NETSOL and other large organizations are bound to change. Small organizations are already shutting down globally. The PP guys should in fact focus on educating people on how the economy is being affected, how global organizations with billions of dollars in revenues are being affected, explain the terms like “furlough” and how large organizations globally are taking pay-cuts and lay offs. Large economies and richer governments are helping their businesses by giving bailouts, no such thing is possible in Pakistan.
A better and sane understanding of the situation without cheap and first-to-report mentality goes a long way in establishing a good reputation for a media house. Unfortunately we have a long way to go in this area.
Yes, true story…. awful company
https://mediabites.com.pk/2020/04/netsols-strategy-to-tackle-business-losses-clarified-amidst-coronavirus-crisis/?fbclid=IwAR31WzWbcS3OMRVfTd8smdXXfJZ2dsZCnoyPkhpYkVij00jiFOtgP5-CZm0