Parle Products Pvt Ltd, one of the largest biscuit makers in India, is going through a rough phase. The company is likely to cut 10,000 jobs across the functions amid the slowing economic growth and falling demand in the rural parts of the country.
A sharp drop in Parle's biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, Category Head at Parle, said to a media website.
"The situation is so bad, that if the government doesn't intervene immediately... we may be forced to eliminate these positions," he added.
The ninety-year-old company employs about 1,00,000 people, which includes direct and contract workers across ten company-owned facilities and 125 contract manufacturing plants.
Due to the goods and services tax, the company had to increase prices of its 'value biscuits' such as Parle- G. Other biscuits and confectionery makers are also feeling the heat due to the GST rates and may follow the path of handling pink slips if the slowdown remains the same.
It can be recalled that not only FMCG but retail and automobile sectors are also going through a similar situation. Many automobile companies are shutting down their operations and firing the contractual workforce.
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