News: Tata Motors rules out layoffs amidst slowdown

#Corporate

Tata Motors rules out layoffs amidst slowdown

As per its website, the automobile major currently employs about 83,000 persons in the country.
Tata Motors rules out layoffs amidst slowdown

Despite the ongoing slowdown in the auto market, automobile major Tata Motors is not looking to reduce workforce as it expects things to improve amid a wave of new products lined up for the launch over the next few months.

Tata Motors Chief Executive Officer and Managing Director Guenter Butschek stated, “We do not have such kind of plan,” when questioned if the company was looking at rationalizing its workforce owing to a prolonged downturn in the domestic automobile industry.

Guenter further added that if the company would have liked to take such a step then it would have taken it already, given that the crisis has been ongoing for 12 months.

As per the website, the automobile major currently employs about 83,000 persons with presence across commercial and passenger vehicles.

Given that the company is now in the midst of new product launches over the next few months and there is also the transition to BS-VI norms Guenter added that the automobile is well-positioned in order to outperform the market. In addition, he revealed that the company is taking all necessary steps in the commercial vehicle (CV) space, which continues to be its backbone in terms of revenues, to beat the current situation. 

More so, the company has put in place all kinds of mechanisms in place including cost optimization and quality control measures, to get to the next level. Guenter, however, admitted that he has never seen such a kind of volatility in the market in his over 30 years of career so far.

While Tata Motors may not be looking at layoffs, however, it has been taking other steps to beat the slowdown. As per reports, the auto major was working on a voluntary retirement scheme (VRS) last month. As per the Auto Components Manufacturers Association (ACMA), close to one lakh temporary workers in the auto components sector lost their jobs between October 2018 and July 2019 due to the slump in the auto industry.

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Topics: #Corporate, Recruitment

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