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Global majors take 90-day no-layoff pledge as Covid-19 led financial crisis continues

Many small companies and their employees will continue to remain a victim of the lockdown caused by the pandemic.

SNS | New Delhi |

Coronavirus pandemic has pushed the world’s economy down the hill, experts believe it might take some time to get back on track. Meanwhile, there are businesses that are facing their worst crisis after the 2008’s global financial crisis.

Many small companies and their employees will continue to remain a victim of the lockdown caused by the pandemic, while there are other people who may just get lucky of being employed at various global majors. This is because a group of global companies have taken a 90-day no-layoff pledge or an insignificant layoff oath, as the COVID-19 crisis continues to wreak havoc across the globe.

This pledge also implies to the several global majors that are present in India.

As per a report published on Times of India, firms like SAP, JP Morgan, Bank of America, Morgan Stanley, among many others have pledged to safeguard their employees’ jobs by putting fresh hiring at pause. Companies like Tata backed Starbucks are offering paid leaves to its employees who are tested positive for the COVID-19. While many have already set up funds, others are in process of creating one to help their employees to pass the pandemic led crisis.

Palo Alto Networks CEO Nikesh Arora in a tweet said, “Today we announced a COVID Relief Fund – seed contribution from our mgmt, the board, the company and me of 4M+ – we will match employees 4x. Foregoing salary to contribute. Also, committed to no COVID related layoffs to allay concerns of our employees.”

While the major global brands are gearing to support their workers, small and medium businesses are shutting down their doors. Some of the most affected businesses include local restaurants and daily wagers and others.

Morgan Stanley CEO James Gorman was quoted by American media as saying that his employees jobs would be safe this year.

Meanwhile, Fitch Ratings slashed India’s growth forecast for the current fiscal to a 30-year low of 2 per cent, from 5.1 per cent projected earlier. Similarly, Moody’s Investors Service chopped India’s economic growth projection for 2020 from 5.3 per cent to 2.5 per cent. The Investors Service also changed Indian Banking system to negative from stable.