Company founders will also forego 100 percent of their salaries for the next six months
CARS24, the online marketplace for used car sales, said that its employees’ voluntary pay cut due to the coronavirus lockdown would be invested as ESOPs of the company. It added that employees would be ‘right away’ allotted these ESOPs worth twice the amount invested.
Company founders will also forego 100 percent of their salaries for the next six months. “The underlying idea behind the decision was to keep the financial wheel running and ensure that the salaries of their employees are released on time," it added.
A CARS24 spokesperson has told PTI that the company will keep evaluating the situation continuously and take all the essential measures while keeping the interest of employees in mind. "We are optimistic and believe that we will emerge stronger once the situation is better," the spokesperson added.
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Prime Minister Narendra Modi on April 14 announced the lockdown will be extended till May 3. He added that relaxations if any, would only be allowed from April 20 only in areas where no new COVID-19 cases are recorded. Pursuant to this, the Ministry of Home Affairs (MHA) has issued revised guidelines for lockdown 2.0.
The lockdown has disrupted startups such as CARS24 and Zoomcar as business dwindles, and many are downsizing or adopting salary cuts to stay afloat.
(With inputs from PTI)
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