Tata Motors is reducing its staff by offering a voluntary retirement scheme, in its first major move under N Chandrasekaran's leadership. The company, which is attempting to shrink its management from 14 levels to five, is targeting 400-500 executives through the scheme. The unit had 26,569 people on its rolls in fiscal 2016.
The country's largest automaker by revenues, Tata Motors has been offering VRS on and off to its employees, with the last one being taken up by 250-odd factory workers in 2015-16. That year, it had incurred an employee separation cost of £1 million. The company has yet again resorted to the extreme step, to reduce costs and to streamline its operations after losses widened at its local unit. The new organisational layer of five levels will begin from next month.
Tata Motors has identified 120 roles in the top two levels, while it is in the process of ascertaining positions for the next three levels. Management restructuring and VRS proposal was approved by the board of directors last month.
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