1. First big move under N Chandrasekaran: Tata motors to offer new VRS package to over 500 executives to ‘rightsize’ company, says report

First big move under N Chandrasekaran: Tata motors to offer new VRS package to over 500 executives to ‘rightsize’ company, says report

In what can be said as the first big move under Natarajan Chandrasekaran, chairman of Tata Sons, Tata Motors is planning a big organizational restructuring and a part of it could be to bring down its white-collar workforce by initiating a VRS package which will be offered to over 500 executives.

By: | Updated: March 14, 2017 1:18 PM
“The company has confirmed proposal on VRS package and it has been approved by the board. The exercise is still underway,” they added.

In what can be said as the first big move under Natarajan Chandrasekaran, chairman of Tata Sons, Tata Motors is planning a big organizational restructuring and a part of it could be to bring down its white-collar workforce by initiating a VRS package which will be offered to over 500 executives. According to CNBC TV18, Tata Motors is mulling to relocate part of its mid-level executives to Global Development Centre. “VRS option will be given to executives who will not be absorbed in the new management structure which goes live from April 1, 2017. VRS package will be announced post-Tata Motors’ restructuring exercise completion,” sources told the channel. “The company has confirmed proposal on VRS package and it has been approved by the board. The exercise is still underway,” they added.

Recently, the $103-billion Tata Sons appointed Chandra as the group Chairman, following the unexpected ouster of Cyrus Mistry, which led to a bitter public feud between Mistry and Tata. Chandra is the first non-Parsi chairman of the 150-year old Tata group. Chandra was also the CEO and Managing Director of TCS since 2009 and spearheaded the company into becoming India’s largest software exporter. He joined the company in 1987 after completing Masters in Computer Applications from Regional Engineering College, Trichy, Tamil Nadu. TCS revenue under Chandrasekaran has more than tripled (3.7 times) to about Rs 1.1 lakh crore in 2015-16 from Rs 30,000 crore in 2009-10.

 

N Chandrasekaran was elevated to the board position at the group’s holding company, Tata Sons, on October 25, along with Jaguar Land Rover boss Ralf Speth, a day after Mistry, who was chairman for nearly four years, was suddenly sacked. Chandrasekaran has never attended management school. People close to him say he doesn’t micro-manage but reviews the work intensively.

Reportedly, Tata Sons directors and Ratan Tata were unhappy with Mistry’s approach of shedding non-profit business and concentrating only on cash cows.
Earlier the company had also accused Mistry of confidentiality breach and had promised legal actions against him. Mistry had reportedly filed a petition seeking the intervention of the National Companies Law Tribunal, accusing the conglomerate of shareholder oppression and mismanagement.

  1. No Comments.

Go to Top