Tata Motors offers VRS to executives in a bid to cut costs

N Chandrasekaran, the new chairman of Tata Sons, made his first big move in the company and offered a voluntary retirement scheme (VRS) to its executives, which would lead to some cost cutting.

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Tata Motors is shrinking its management from 14 levels to five starting next month, and the VRS scheme is targeted at 400-500 executives, making it the biggest workforce change in the history of the company.

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India’s largest automaker in terms of revenues aims to reduce costs and streamline its operations after suffering ample losses at its local unit.

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Other than employee rationalisation via VRS, it also plans to shift some middle-level executives to new job responsibilities in global development centre (GDC) in Pune, under finance and data analytics.

(Image source: GG2)