Tata Motors to lay off 1,100 at JLR unit

This move to slash temporary jobs is part of its strategy to cut costs at the Jaguar Land Rover unit.

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Tata Motors is planning to lay off 1,100 temporary employees at its luxury Jaguar Land Rover (JLR) unit, in pursuit of a target of cutting costs by £1 billion, following the financial pressure due to the pandemic.

By March 2021, Tata Motors hopes to save £5 billion in costs at the JLR unit. A significant part of this target, that is, about £3.5 billion, has already been accomplished. It will further cut down capital expenditure at the unit, which will save £2.5 billion in the current financial year, compared to the over £3 billion it was used to spending till now, every year.

Having suffered losses in the fourth quarter — to the tune of Rs 98,940— the unit is now going to focus on preserving cash, investing in the right areas and paying attention to its capital expenditure. Total revenue for JLR dropped by 27.7 per cent to Rs 62,493 billion in the quarter that ended March 31.

While undertaking a review of all its businesses, Tata Motors will be asking those who are not adding strategic value, to leave. This is expected to save about Rs 6,000 crore ($789 million) in its domestic business in FY 2021.

The lion’s share of Tata Motors’ revenue comes from JLR, which, unfortunately, reported a pre-tax loss of £501 million for the quarter.

Sales are expected to recover in China, Europe and the US soon.

1 COMMENT

  1. I am surprised to hear the term ‘Lay-off’ repeatedly in the context of the current wave of job reductions. In strict legal terms they are ‘Retrenchments’ and not ‘Layoffs’. Both these terms have different legal repercussions
    and are not a matter of semantics. A Lay-off in the ID Act 1947 (modeled after Industrial Relations Act of UK) defines a ‘lay off ‘ as a temporary cessation of employment due to business related issues. It also stipulates the employees reinstatement in the order of their seniority in the organization, once the difficulties are over. Retrenchment on the other hand means a permanent cessation of employment with no obligation on the part of employers for reinstatement. Can some labour law expert here explain as to why this confusion?

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