New Delhi: Hurt by a slowdown in real estate market, Parsvnath Developers said it would sack under-performing employees as part of its cost-cutting measures that would begin in the next 15-20 days.
Pointing out that sales in the current festival season have declined by about 40-50%, the company’s Chairman Pradeep Jain said: “Non-performer has to go away, cost-cutting measures will start in 15-20 days”.
“He, however, did not specify the number of people who will be retrenched. The company currently employs 1,400 people and about 30,000 people are indirectly employed,” Jain said.
“No percentage in mind,” he said, when asked to put a number on non-performer employees. The company has not yet begun the process of identifying the non-performers.
He, however, clarified that non-performer would be replaced by good professionals, which are currently available in the market in good number.
Asked about the property sales in the ongoing festival season, Jain said: It has dropped ‘significantly’ compared with last Diwali and infact have fallen by 40-50%.
He further added that despite a slowdown in the demand, the company has raised its property price by an average 15% from January onward.
Speaking on behalf of the industry, he said that the sector do not want any bailout package and government needs to increase liquidity in the market.
He pointed out that the banks have not cut the interest rates even though RBI has brought down the cash reserve ratio.
“Government is not able to infuse proper liquidity in the hands of people and entrepreneurs,” Jain said and demanded a further cut of 200 basis points in CRR and repo rates.