Amidst Worsening Slowdown, Ashok Leyland Rolls Out Employee Separation Schemes Over And Above Existing VRS

Commercial vehicle manufacturer Ashok Leyland has started to roll out employee separation schemes in light of the ongoing slowdown in the automobile industry, reports The Economic Times.

The two schemes which have been offered to employees till now are capped at Rs 30 lakh and Rs 60 lakh. The purpose of these employee separation schemes is to present an alternative for those employees who don’t wish to opt for the voluntary retirement scheme (VRS).

Employees who wish to opt for the new schemes have been told to intimate the company about their decision by the end of this month (August 2019).

The move is aimed at reducing labour costs and improve the company’s margins in the face of tepid demand. In a press meet held regarding the same, Chief Financial Officer and Wholetime director Gopal Mahadevan stated that the company wanted to save Rs 500 crore in operational costs this year by implementing a large-scale cost cutting programme.