Ratan Tata says laying off employees portrays lack of empathy in the leaders

Tata Group owner and renowned philanthropist Ratan Tata recently shared his views on the companies using layoffs as an escape strategy from the Coronavirus induced economic and financial crisis. On Thursday, he said that layoffs by the  companies in India during
The COVID-19 pandemic would act as a knee-jerk reaction. It also portrayed the lack of empathy among the top leaders of the country.


In an interview with the news website YourStory, Ratan Tata exclaimed his disappointment saying that “The employees are the people who have worked for you and have served you all their careers; and you send them out to live in the rain.’ He also asked, ” Is that your definition of ethics when you treat your labor force that way?”


Companies not only in India but all over the world have laid off several employees because of the financial instability they suffered due to the pandemic and nationwide as well as local lockdown(s). The Tata Group in this scenario acts as a global influencer with not a single employee being laid off.

However, the Tata group has used the pathway of salary cuts of its top management by up to 20 percent to battle the financial constraints. It is also extremely appreciable to mention that several Tata Group companies in different sectors have been severely hit by the pandemic, especially airlines, financial services, hotels, and auto businesses, but have still not laid off any employees.

For a company to survive and flourish it is imperative for it to be sensitive to its people and that the COVID-19 crisis holds the potential to probably hit any company wherever it is. He also said that committing errors in business is natural but what is important is that you do the right thing at every turn and not shy away from difficult decisions, he said.

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