SaaS & Tech

Delhi Startup Demands 30% Pay Cut From Entire Team to Recover Rs 2 Crore Testing Mistake

Sabyasachi Chandra

A Delhi tech startup mandates a 20-30% pay cut for all employees to recover a Rs 2 crore financial loss.

The penalty was triggered by a single developer's software testing error that ruined a major MNC contract.

Management is offering speculative ESOPs and freezing appraisals to manage the resulting cash flow crisis.

The incident highlights poor corporate governance and asymmetric risk-sharing within early-stage businesses.

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