Tata Motors reduced its managerial team by up to 10%-12% from its current white collar workforce
Tata Motors has sacked up to 1,500 of managerial jobs from its total white collar workforce. The move comes as part of an organizational restructuring exercise of the homegrown auto manufacturer. Tata Motors’ managing director and chief executive Guenter Butschek said that the company is aiming to reduce its white collar population by 10% – 12% from a total of 13,000 something workforce.
However, the company has ensured that its blue collar workforce have not been impacted by the decision of workforce reduction. The decision was primarily taken during the last financial year when Tata Motors decided to reduce its managerial levels from 14 to 5 via an organizational restructuring. The company also says that jobs cuts have been implemented after assessing the performance and leadership qualities of the employees for over 6-9 months.
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Tata Motors also claims that the entire restructuring and job cuts have been carried out with a view to get ownership and accountability within the organisation. It also says that the decision has nothing to do with cost cutting. Some managerial employees were given the option of voluntary retirement and some have been transferred to the company’s services arm in Pune, the Global Delivery Centre.
With the sacking of 1,500 managerial jobs Tata Motors joins the other companies from various sectors like banking and finance, capital goods, information technology, engineering and construction companies as well. This trend has created a concern across the country about a jobless economic growth. The numbers of such companies sacking a massive number of employees are increasing rapidly in recent times.
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Construction major Larsen and Toubro announced 14,000 job cuts in the first half of FY17. Banking giant HDFC too has sacked 10,000 of its employees in the second half of FY17. Information technology sector, wh9ich is the largest private sector employer in the country has also cut around 50,000 jobs leaving a huge number of people jobless.
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