Allen Career Institute, a leading coaching center in India, the institute has announced a reduction in salaries for its 4,000-plus faculty and administrative staff. The drop in revenue as a result of the significant decrease in admissions has forced the institute to implement cost-cutting measures. This year, student admissions fell from 131,000 to 81,000. Typically, the enrollment period at Allen Career Institute runs from December to June.

Allen Career Institute Cut Staff Salary by 20-40%

During a meeting on June 17, the faculty was informed by CEO Nitin Kukreja that student admissions for the year had decreased from 131,000 to 81,000. As a result of this decline, a decision was made to implement salary cuts, as reported by a senior physics teacher in Mint's article.

The faculty at the institute are upset about the announcement of salary cuts. Around 600 teachers wrote a letter to address their worries, emphasizing the negative effects of the cuts on their finances and mental well-being. Many long-standing faculty members feel let down by the abrupt decision.

To make up for the lack of funds, Allen has implemented a new payment system that includes variable pay for its workers. This means that employees will now receive a percentage of their salary based on different factors like their own performance, the company's performance, and the center's performance. This change has increased worries among faculty members about their financial security due to the unpredictability of their income.

Reasons of Reducing Number of Students in Kota


In recent years, coaching institutes in Kota have expanded to other cities in Bihar, Uttar Pradesh and Rajasthan providing parents with more options for their children's education. However, the rise in student suicides in Kota has caused concern among parents, leading to a decrease in enrollments at the traditional coaching hub. This shift in the coaching landscape reflects parents' growing preference for sending their children to nearby locations instead of Kota.