Textiles and apparel major Raymond has fired hundreds of employees across the board, since February. The company had started the process due to varied reasons like the group company’s mounting debts, the slowing down of the economy, and the last hammer to the coffin was the COVID-19 crisis.
It was found that the company not just laid off the staff members, but also failed to pay the severance of the existing staff.
Like Indiabulls, the story of Raymond layoffs caused a stir on social media, Reddit. A Reddit blog post that went viral alleged that “Raymond Limited is firing around 1,100 employees + forcing a 65% pay-cut on them April onwards till end of the notice period.”
The company has denied any wrongdoings and stated that news of laying off employees is incorrect, and based on speculation, though the company confirmed that it has adopted some cost-cutting measures but company didn’t confirm anything about sacking people.
The employees, who were fired in February, were informed that they will receive their three months’ salary. But the company only paid them their complete salary for the month of March and for the month of April, the only basic salary was offered.
Some received only 25 percent of their salary. Meanwhile, the company maintained that salaries for both months were disbursed without any delay.
It was stated that the employees who were not ready to leave, the company had threatened to take stern action.
The company has seen a decline in its market value for some time now. Recently, the textile player Raymond said that the ownership of Raymond brand will remain with the demerged new lifestyle company. The company had earlier announced separation of the consumer and lifestyle businesses into a separate entity.