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Last Updated : Mar 11, 2014 12:44 PM IST | Source: Moneycontrol.com

Tata Motors asks 600 employees to leave: Report

Reeling under a sharp slowdown in its local business, Tata Motors has asked about 600 employees to leave by accepting an early retirement offer (ERO), The Financial Express reported today quoting sources.

 
 
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Reeling under a sharp slowdown in its local business, Tata Motors has asked about 600 employees to leave by accepting an early retirement offer (ERO), The Financial Express reported today quoting sources.


The report said those asked to leave were mostly employees who had been in the company for over 20 years and scored low on the firm’s appraisal system. The company has worked out a severance package for each employee under the ERO.


The cost cuts were part of a program started by late MD Karl Slym who had introduced other methods such as cutting down on vendors and sourcing for Tata Motors and subsidiary Jaguar Land Rover commonly, the FE said.

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Tata’s domestic auto business has been lukewarm for a few years now, with a slowdown in the Indian auto sector coupled with its dated line-up of cars weighing sharply on sales.


The firm’s overseas unit, JLR, on the other hand has picked up the slack, notching up robust sales in the past few years.

Tata Motors’ standalone net profits fell from Rs 1,242 crore in FY12 to Rs 301.81 crore in FY13.

First Published on Mar 11, 2014 08:57 am
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