Tata Motors Gives Pink Slips To 1,500 Managerial Jobs

Tata Motors joins several companies to adopt such strategies due to different reasons. The job cuts are a matter of concern which leads to a jobless economic growth across multiple sectors.

But Tata Motors management has stated that the worker jobs have not been affected due to this exercise. The company aims to reduce the managerial levels from 14 to 5.

Butschek said, "The reference (total managers) on which we started (the exercise) was in the vicinity of 13,000...we do see as far as the white collar population is concerned, an overall reduction in the vicinity of 10-12% (up to 1,500)."

Officials of the company stated that organisational restructuring was done to get a view of ownership and accountability within the company and not to cut cost. Some employees were offered voluntary retirement.

Several other employees were transferred to service arm, Global Delivery Centre. But the company did not reveal how many people were moved to the service division based in Pune.

Tata Motors Group Chief Financial Officer, C Ramakrishnan said, "We underwent a very detailed exercise in terms of the roles, the requirements and the fitment of the roles etc. It was a very comprehensive exercise which we rolled out over a 6-9 month period which also factored in performance and leadership qualities."