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DNA To Cut 30-35 Jobs; Revenues Grew 24% Y-O-Y, Says CEO Rao

imageMumbai-headquartered newspaper Daily News and Analysis, launched in 2005 by an equal-stakes JV between Dainik Bhaskar’s publisher DB Corp Ltd and Subhash Chandra’s Essel Group, will soon cut 30-35 jobs, CEO K.U. Rao told contentSutra. “We have reduced pagination from 42 in July last year to 32 now. So we need to reduce manpower proportionately,” Rao said. DNA employs 850 people across five editions–Mumbai, Bangalore, Pune, Ahmedabad and Jaipur.

In a telephone Q&A, Rao said that DNA’s revenues grew 24% during the current fiscal. He claimed that the company has met bottomline targets and is in line to break even by 2011-12.

Following are excerpts from the Q&A:

Will salary cuts follow the job cuts? Any other cost cutting measures?

I announced in early January itself that there won’t be increments this year. But there are no salary cuts. We would rather cut flab and make the company a more lean and efficient machine than cut people’s salaries.

Why do you think so? Isn’t there a humanitarian argument that some salary is better than no salary?

Salary cuts have a big demoralizing effect. Also we think it’s inappropriate to engage somebody after negotiating something with them and then cut that. All we are doing now is to rejig manpower to meet the requirements of the current pagination.

If you are taking manpower out of the system, it means you don

6 Responses to “DNA To Cut 30-35 Jobs; Revenues Grew 24% Y-O-Y, Says CEO Rao”

  1. SACKING ON AFTER LUNCH…the DNA style

    http://www.dnaindia.com/report.asp?newsid=1242740

    Sack humanely

    N RaghuramanThursday, March 26, 2009 9:57 IST
    N Raghuraman is an editor with DNA

    More than the economy, what these recessionary times have wrecked is self-confidence. With the sword of Damocles perennially hanging over employees, it takes a few words from the employer to blow one's self-esteem to smithereens. "You are being laid off because of your incompetence," are adequately marauding words to devastate self-respect, maybe stash a career into the trash-box.

    Which brings us to the fundamental question of whether we can actually terminate somebody without the episode having a terminal effect on his self-esteem.

    In a competitive business market, where the scales of productivity are constantly being tipped by unforeseen factors, it sometimes becomes imperative for an organisation to indulge in some workforce flab-trimming, howsoever unsavoury that may be. The subtlety is not in laying off as in the method of doing so. Let's admit that lacklustre performance can never be a yardstick for termination, as it would reflect more on the hiring ineptitude of the company than on the employee himself.

    Every employee contributes to building an organisation — some a little more, some a wee bit less. Every individual deserves respect even in the face of termination. One reason I staunchly contest termination as tantamount to coming under the chopping block.

    Let me give you an instance. In my earlier assignment, I was entrusted with the unenviable job of terminating some employees from the organisation. To be fair to each individual's endeavour, I called for the personal file of every employee and tried to gauge their contribution to the company since the day they joined.

    After a thorough perusal, I summoned those who were presumably slightly less productive for the company and told them the reason for the cessation of their employment. I ensured I never spoke derogatorily about their performance and tried my best to keep their self-esteem intact.

    Notes were exchanged, debates held, on what necessitated the termination. All dues were settled. As a gesture of amity, we even took them out to a small lunch and parted ways from there. Since then, anyone is yet to tell me that those terminated have spoken a single ill word against the company. In fact, some of them sent me greetings on a recent occasion.

    The lesson is: lay off if you must, but do it in a way that jobless people leave with loads of self-esteem. Not only will it help them find a new job faster, but the effortless move will help give the organisation a more humane, employee-friendly image.

  2. Quality (product or service) should be the number 1 priority of any companies out there. On the brighter side, it’s a good thing to hear that there’s no salary cuts for the year. At least, in that way, employees will still be willing to work with you.

  3. When Rao "cuts the flab" – hope that's what he really cuts. Lots of non-performers out there in the news room that have not been on the field at all.

  4. Mr. K U Rao Needs a reality check, if your sales guys can't sell. doesn't mean companies aren't advertising. Companies might be cautions about spending, but they will definitely invest in a good product. If your product lacks nobody will invest in your product. Maybe it's time he looks into his product. And if "you" (sorry not you) but your readers find your product good and you market it correctly, and still sales don't come in ..sack your sales head (he's probably just sitting in his cozy cabin and sipping n number of black coffees and acting to be busy). And remember people(read clients) invest in companies they believe in ..not just on the aspect that you claim to be on the top.

  5. This is the time of recession all over the world but there is some opportunities to buy our own home. Ask some home planners and certified real estate consultants. For this purpose i recommend one certified real estate consultant in Noida, India that is Sumangalam Propmart.