Slowdown forces aggressive cost cuts at Tata Motors, co may offer VRS to 1,600 employees

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Tata Motors is working on a voluntary retirement scheme (VRS) for 1,600 employees of its passenger and commercial vehicle businesses across locations and hierarchies, reports Mint.

Earlier, the company let go of excess staff with its Jaguar-Land Rover (JLR) business. The economic slowdown has hit the carmaker hard and it made aggressive cost cuts this fiscal, a source told the publication.

A second source said focus would be on reducing engineering staff, and contracts of some senior consulting staff may not be renewed. The third source added that 'headcount rationalisation' would also look at the R&D and engineering research teams in Pune.

Moneycontrol could not independently verify the report.

Tata Motors has the largest workforce in the industry, congruent to which its Q2 FY20 employee cost (as a percentage of net sales) doubled to 10.7 percent. Employee cost at Maruti Suzuki India, in contrast, was 4.9 percent, compared to 3.5 percent year-on-year.