Atlas Cycles has closed its manufacturing unit in Ghaziabad, leading to job losses of 700 employees.
In the official letter announcing the decision, Atlas Cycles wrote: "Post lifting of lockdown with effect from June 1, 2020, Sahibabad Unit of the company is not in a position to resume manufacturing operations due to financial constraints. Hence, the workforce of Sahibabad Unit of the company will be laid off with effect from June 3, 2020, till adequate arrangement of funds is made."
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The workers were in for a rude shock when they reached office on June 3 as the notice was reportedly pasted on the main gate of the production unit.
Some workers have questioned the decision, claiming the company’s production was on track.
In February 2018, Atlas Cycles closed its manufacturing plant in Sonepat, Haryana while its Malanpur plant in Madhya Pradesh ceased operations in 2014.
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