Earlier this month, Royal Enfield launched its Classic 350 and made headlines by starting to deliver the enhanced and upgraded model to its customers. Now, the manufacturer of motorcycles is in the news for laying off about a 100 employees as part of its annual performance review process. The Company has been trying to reduce its workforce for some time now, as part of its efforts to optimise costs.
This round of payoffs is part of the usual yearly evaluation of employees the Company told CNBC-TV18, assuring that it would be lending all possible support to the laid off staff, including senior managers and executives as well. The total workforce strength of the Company is apparently about 10,000, of which 50 per cent are permanent staff. That means, only about one per cent of the overall workforce has been laid off.
Sales were declining for Royal Enfield, with a 12 per cent dip in 2021. While it posted a profit of Rs 237 crore for the first quarter of financial year 2022, its net loss was Rs 55 crore in the first quarter of financial year 2021.
Post lifting of lockdown restrictions, sales did start improving slightly. The Company increased the price of its adventure bike model, Royal Enfield Himalayan, twice this year. After a price hike in July, it has now again raised the price by Rs 5,000. The Company is also looking to enter the electric motorcycle space.