KFC Indonesia makes cuts and delays to salary to avoid layoffs

KFC Indonesia is reducing and delaying wages and bonus to avoid layoffs amidst the COVID-19 pandemic. In a statement to the Indonesia Stock Exchange (IDX), director of KFC's licence holder Fast Food Indonesia, Justinus Dalimin Juwono said the wage adjustments will be made in varying levels, with the senior management taking the biggest cuts. 

He added that store workers would not have their salary deducted. Instead, a small portion of it will be paid at a later date. Juwono added that KFC halted operations of 97 outlets in Indonesia as the malls they are located in had to close due to the partial lockdown measures put in place. This occurred in cities nationwide including Jakarta. As for the other outlets currently operating, they only allow takeaway orders, drive throughs and delivery services. Meanwhile, Juwono said in a statement on IDX on 29 April that it will halt the expansion of additional outlets and will only continue doing so after the pandemic has stabilised. Marketing Interactive has reached out to Fast Food Indonesia for comment on the impact on its marketing team.

Indonesia recently confirmed 260 new COVID-19 cases recently, bringing the total to 9,771. Quoting Achmad Yurianto, the health ministry's disease control and prevention director general, The Jakarta Post said 11 more people had passed on due to the pandemic, and the death toll now stands at 784. KFC joins other companies that have implemented salary cuts, such as AirAsia, Malindo Air, as well as agency networks including WPP, Publicis Groupe and Omnicom Groupe.

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