Delhi Startup Orders 30% Pay Cut for Entire Team After Rs 2 Crore Accounting Error
Delhi-Based Startup Sparks Debate Over Proposed Salary Cuts
A Delhi-based tech professional's unusual corporate dilemma has sparked a heated online debate after their startup asked employees to take an unexpected financial hit. According to a Reddit post, the company suffered a loss of around Rs 2 crore due to a critical testing mistake made by a single employee.
Instead of holding only the responsible individual accountable, the management reportedly asked the entire team to give written consent for a 20 to 30 per cent salary cut for the next two months to recover the loss. The affected employee, a software engineer with several years of experience and a team of over 20 members, sought advice on whether to refuse, negotiate equity, or leave the company.
The employee's situation is as follows: An employee made a critical testing error that ruined a major order for an MNC brand, costing the startup Rs 2 Crore. To cover the loss, management wants a cost-sharing split, asking employees for written consent for a 20-30% pay cut for the next 2 months, plus appraisals are on hold. In exchange, they are offering either ESOPs or a promise to repay the deducted amount later.
The employee has sufficient savings to absorb the pay cut without immediate financial stress, but the situation has left them questioning whether such a move is justified. They asked if it is normal or legally permissible for a company to penalize an entire team for an individual's technical mistake, and if they should demand a massive chunk of ESOPs if they agree to the cut.
The internet has been reacting to the situation, with users offering various perspectives. One user suggested that the employee could threaten to switch companies if they cannot afford the pay cut. Another person argued that losses should not affect regular employees' salaries, and that the burden should come out of the founders' and upper management's paycheck.
| User Perspective | Quote |
|---|---|
| User 1 | "Sorry, I cannot afford this at this stage in my life. Threaten to switch, if you need to." |
| User 2 | "If profits are not changing salary, then losses shouldn’t change it either. Unless you want to be on 'good terms' with the higher-ups, there is no need." |
| User 3 | "This literally should come out of the founders' and upper management's paycheck, not the regular employees. If you have substantial stock options with the company, then it's understandable, but if not, then they're fleecing you for an issue out of your control." |
More in Market
SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
