Company Faces Rs 2 Crore Loss, Employees Asked To Take 20-30% Pay Cut; Reddit Post Triggers Debate

A Delhi-based tech startup has triggered a storm online after reportedly asking its entire team to accept a steep salary cut to cover a massive loss caused by one employee's mistake.

In a post shared on Reddit, a software engineer wrote, “Company asking for a 20-30% pay cut for 2 months due to a ₹2 crore loss caused by another employee. What should I do? ” The user explained that a “critical testing error” by one staffer “ruined a major order for an MNC brand, costing our startup Rs 2 crore", following which management proposed a “cost-sharing split” across the team.

Company asking for a 20-30% pay cut for 2 months due to a ₹2 Crore loss caused by another employee. What Should I do?
by u/Playboy_069 in delhi

According to the post, the company is seeking written consent from employees for a 20–30% pay cut for the next two months, with appraisals also put on hold. “To cover the loss, management wants a cost-sharing split. They are 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 engineer wrote.

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The situation prompted the employee to ask if this was “normal or legally permissible” and whether they should refuse, negotiate more ESOPs since they handle core tech, or “just refuse, let the chips fall where they may, and start interviewing elsewhere immediately”.

Blunt Advice

Reddit users were blunt in their advice. One comment said, 'Say, "Sorry, I cannot afford this at this stage in my life."' No more explanations needed. Threaten to switch, if you need to." Another warned, “You shouldn't. If you permit it now, this will become a culture in the company."

A widely upvoted reply argued the loss should be borne by leadership, not regular staff: “This literally should come out of the founders' and upper management's pay check, not the regular employees… if not, then they're fleecing you for an issue out of your control."

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Summing up the mood, one user wrote, “Simply deny. Why should anyone else pay for someone else's mistake? When they book a profit, do they pay an extra 20-30% of your salary as profit-sharing? If no, then they have no right to share the loss."

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