May 24, Wednesday : In an organisational restructuring exercise, Tata Motors announced that it has reduced its managerial workforce domestically by 10-12 per cent.
“The reference (total managers) on which we started (the exercise) was in the vicinity of 13,000…we do see as far as the white collar population is concerned, an overall reduction in the vicinity of 10-12 per cent (up to 1,500),” managing director and chief executive Guenter Butschek told media.
Butschek told this after announcing the company’s earnings for the fourth quarter of 2016-17.
Recently, the Indian motor company has announced Voluntary Retirement Scheme or VRS for its employees.
IT companies also witnessed major layoff of over 50,000.
Construction Company Larsen and Toubro had announced it has reduced workforce of 14,000 jobs in the first half of FY17.
Despite of the fact of downturn in major software companies, Law and IT minister Ravi Shankar Prasad denied and refuted the contemporary situation by saying he completely refutes the allegations that there is large-scale retrenchment in the Indian IT sector.
He also said that the government has appointed consultancy firm McKinsey to build a roadmap for the Digital economy for upcoming few years.