Tata Trusts will likely do away with chief financial officer and chief operating officer positions to streamline operational and management costs, The Economic Times reported on October 28.
The Trusts, which owns 66 percent of the Tata group holding company Tata Sons, is carrying out a restructuring drive, the report cited sources as saying.
The exercise started before the appointment of Noel Tata as the chairman of the Trusts. An internal survey and audit found that the staffing costs rose to Rs 180 crore and additional expenses related to direct implementation projects have pushed to the employee bill to Rs 400 crore, the report cited sources as saying.
Moneycontrol could not independently verify the report.
Ratan Tata, the chairman emeritus of Tata Sons who helped build one of India’s largest and most influential conglomerates, passed away at a Mumbai hospital on October 9. He was 86.
His half-brother Noel was named the chairman of the Trusts on October 11.
Last week, Mint reported that the trustees of Sir Ratan Tata Trust and Sir Dorabji Tata Trust have become permanent members, putting an end to a system of fixed-term appointments.
The decision was taken at the board meeting of the two trusts held on Thursday, the newspaper said. Following the move, the board members won’t retire until they decide to resign and new members will be appointed only after a unanimous consent, the report said.
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