SINGAPORE (THE BUSINESS TIMES) - BreadTalk Group is cutting between 10 per cent and 50 per cent of salaries temporarily as part of a cost-saving exercise amid the coronavirus outbreak, the company said on Monday (March 23).
From March until June, senior management executives are taking a pay cut of between 30 per cent and 50 per cent, while middle-management executives in Asean countries, including Singapore, have had their pay cut by 10 per cent to 15 per cent.
From February until June, the food and beverage player's employees in China and Hong Kong will have their pay reduced by between 30 per cent and 50 per cent.
The measures will impact about 137 employees in Asean countries and yield savings of about $177,000 a month for BreadTalk's Asean operations, including Singapore.
About 1,840 employees in China and Hong Kong will be affected by the measures, which will save the group about $1.4 million a month for its operations in both markets.
Affected staff will need to provide their consent before they are subject to the measures, mainboard-listed BreadTalk said.
It added the pay cuts were implemented only after other cost-saving measures had already been taken. These included no-pay leave, shorter operating hours, controlled overtime hours, and stopping business-related travel and entertainment activities for employees.
BreadTalk shares were up 1.5 cents or 2.1 per cent to 74.5 cents as at 9.27am on Tuesday.