Tata group is set to announce a big layoff of around 1000 employees as they have faced loss at an unprecedented level for one of their companies. Tata group’s several businesses including aviation, aerospace, automotive have reached to a tipping point where there has arrived a need for them to fire most of their employees to control the losses. The contract workers at the automotive and the manufacturing division are the ones that are likely to get fired first, as they are liable to keep them at work as per the contract signed. The contract workers at the Jaguar Land rover and Tata motor plant will be on the hit list first to be fired.
Also, around 1000 to 9000 employees from the Tata steel group at Netherlands are likely to get fired too. Also, to bring the losses under more control, Tata officials have declared that the Salary of the tata employee would be reduced to a 20% in order to cover the losses for the tata group. Earlier, the Tata group has said that no employees would be fired nor any asset would be sold in order to incur the losses of the company but the situation has been worse these days that they have been forced to layoff of many employees to save their company from bearing more loss.
Tata Motors entity Jaguar Land Rover (JLR), which is an iconic brand in the automobile sector of England has already fired 1000 employees from the UK based factories and offices. From the time the pandemic started, the JLR plant in England witnessed a loss of around 30% in their revenue which forced them to fire 1000 employee abruptly. In India, the Tata Motors has faced a loss of around Rs 9894 crores in the 4th quarter of FY2020, where they have had a profit of Rs 1100 crores in the past FY year. For now, it is not clear that in India about where will the Tata officials start firing employees on contract but it is sure that owing to the situation today, it might start soon.
