The Hindu Business Line : Maruti reduces workforce by 27% through VRS

MARUTI Udyog Ltd today said it cut its workforce by 27 per cent through a voluntary retirement scheme as part of efforts to control costs and improve profitability.

In a statement here, it said that 1,251 employees opted for the VRS, the second in two years in the company. "There were 4,606 employees in the company prior to the launch of the scheme. On account of the VRS, the number came down to 3,355 employees," Maruti said.

In the first phase of this VRS, 276 staff, including supervisors, executives and managers took the offer between September 22 and October 18, this year. Maruti spent Rs 29.4 crore to pay the employees in this phase.

In the second phase, from November 19 to December 6, as many as 975 employees at the Maruti factory, who are unionised, accepted the scheme. Maruti did not disclose how much it spent in the second phase.

Maruti is offering VRS to its employees under a three-year strategy called `Challenge 50'.

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