Firms rationalising biz, laying off staff
View(s):More and more companies rationalising their operations in these challenging times are gearing to grant Voluntary Resignation Schemes (VRS) to staff with an idea to encourage those willing to leave to do so on their own accord.
With sales dropping due to COVID-19 and the resultant downturn in the economy the managements are trying to streamline operations and production activities. Many firms said they would rather see their staff leave willingly than make painful decisions about their future.
A number of companies are laying off people in areas they have less business in, while hiring in areas of demand, such as new digital technologies programmes which often carry the added benefits of better financial compensation.
John Keells Holdings (JKH) subsidiary – Walkers Tours Pvt Ltd, an international cement firm and Standard Chartered Bank are some entities that have granted VSS to some employees.
Walkers has automated systems which in turn saw certain job roles become redundant. Out of the 150 employees at Walkers, about 15 have accepted VSS. “The structures in certain entities were amalgamated across the board. For instance, the business units such as marketing, sales, human resources etc were amalgamated in the hotel sector. Their operations in JKH Maldives hotels also came under this structure. As a result high profile positions were created. This was a pre-COVID-19 structure,” a senior JKH official told the Business Times. (DEC)