JCB India, India’s largest construction equipment major has laid off almost 400 permanent employees citing falling business volumes. The retrenchment includes 80 to 90 persons ranging from a DGM till Vice President level over the last fortnight. JCB India has a total workforce strength of 8000 people, which includes 4000 permanent employees.
As per the ET report, the laid off employees have been given a 6 month notice period (pay-outs). They were told that the reason is the current business slowdown. Some were also told that their positions have become redundant.
"We have tried our best to minimize the impact of this transition through a special severance package. This includes continuity of extended medical insurance and out placement services to help them find alternative careers, among other benefits, " said the company.
The time is tough for all and JCB India is not the only one to have taken this tough decision. In fact, it is interesting to see how the construction equipment firm is extending some benefits to the laid off employees, especially, medical benefits as they are most critical right now. The company seems to be holding onto the pillar of compassion and empathy even in these tough times.
“After having taken a re-look at all our expenses and allocations, unfortunately we have also had to take the difficult and painful decision of re-organizing our staff strength across levels to tide over this extraordinary situation to ensure safeguarding the organisation for the coming decades” said Subir Kumar Chowdhury, MD, JCB India.