Allen Career Institute Reduces Staff Salary by 20-40%, Says Report

Allen Career Institute, a go-to institute for engineering and medical aspirants has seen a dip in the student intakes leading to pay cheque cut for staff, leaving them devastated
Allen Career Institute Reduces Staff Salary by 20-40%, Says Report

Allen Career Institute, a famous name in the competitive exam coaching industry has reduced the salary of its faculty members by 20-40 per cent. The pay cut of nearly 4,000 teaching and administrative staff is a result of dip in student enrolment.

"On June 17, a meeting of all faculty was called and the chief executive officer Nitin Kukreja informed that the number of student admissions for the year has fallen from 131,000 last year to 81000 this year," informed a senior physics teacher in the Mint's report leading to salary cut decision.

The step by the Kota-headquartered Allen Career Institute has sent shock waves to faculty and approximately 600 teachers have written a letter to the management voicing their concerns the report mentions.

The institute was started by Rajesh Maheshwari in 1988 with just eight students has over past few decades played a crucial role in shaping the journey of lakhs of students preparing for various engineering and medical college entrance.

With the number of students increasing Allen expanded its teaching staff. However, in the past few months the institute has witnessed decrease in the number of students intake impacting its revenues. As a cost cutting measure, the institute has reduced the salary.

Reportedly, in the letter addressed to the management, teachers said, "We have been a part of this prestigious organization since the competitors tried to woo us away or dilute the business you have built so passionately…We acknowledge that the Kota Centre is facing challenges such as declining enrolment this year…But this decision to cut salaries has shocked us. Salary cuts not only affect us financially but also affect our mental state."

As per multiple media report in April this year, the institute fired nearly 70 sales staff from Chennai, Bengaluru, Delhi, Hyderabad and Panchkula centres.

The step taken by the leading coaching institute is bound of cascading effect on other such institution as well and more salary cuts likely to follow.

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