Parle may lay off 10,000 workers amid slowdown, company clarifies: Report

Parle Products Pvt Ltd, India's largest biscuit maker, may be forced to lay off up to 10,000 workers if a bruising consumption slowdown persists, the Economic Times daily reported Reuters on August 21.

Mayank Shah, Category Head of Parle Products, clarified to CNBC-TV18 that the company has not laid off any employees, but might take the step if the slowdown continues.

Parle, he said, had to initiate a price hike due to an increase in input costs and hike in Goods & Services Tax to 18 percent from 12 percent. While premium biscuits also fall in the same tax slab, he explained the move hurt demand, especially in the rural market, for its largest selling biscuit brand: Parle G.

The news comes as a slowdown in Asia's third-largest economy has hit demand for everything from automobiles to retail products, forcing companies to curtail production and recruitment, while raising hopes that the Indian government would unveil an economic stimulus to revive growth.

"We have sought reduction in the goods and services tax ... but if the government doesn't provide that stimulus, then we have no choice but to let go of 8,000-10,000 people," the Economic Times quoted Mayank Shah saying.