It is reported that in a bid to cut costs, the employees of Ashok Leyland have been offered certain separation schemes. The packages are capped at Rs 30 lakh and Rs 60 lakh, on the basis of the employee’s experience.
It is for those who do not wish to choose the voluntary retirement scheme, that the employee separation schemes have been offered. All the interested employees have to let the management know before the end of this month.
The move will help the Company reduce expenditure in the face of slow sales and mounting inventory.
It is reported that sales have fallen for almost nine months in a row. The sale of passenger vehicles in the last quarter was only a fifth of what it was in 2018, for the same quarter.
Employees at one of Ashok Leyland’s plants carried out a protest demanding better bonus for the year.
In an attempt to balance production and demand, the Company had announced certain no-work days with corresponding allowance cuts at its plant in Pant Nagar, Uttarakhand also.
With these steps and initiatives, the Company hopes to bring down costs, and save Rs 500 crore in terms of operational expenditure.
A slowdown has affected the automobile sector the world over, affecting all associated industries and businesses in the auto space. The sector has been facing massive layoffs for some time now.