Tata Motors is set to save Rs 400 crore from its restructuring exercise, firing people

Tata Motors, recently, underwent a restructuring exercise where it shifted around 1,300 employees to different units and asked many to leave.

The company also slashed 2, 500 positions by dissolving many designations and cutting almost 8-10% of white-collar jobs.

This overhaul is likely to help Tata Motors save nearly Rs 400 crore.

“Without the recast, employee costs would have risen Rs 400-450 crore. It would be more if we look at the direct and indirect benefits - nothing less than Rs 300-400 crore. When we did the budgeting for this year vis-a-vis the new structure, there is a gap of Rs 400 crore,” Gajendra Chandel, head of human resources at Tata Motors, told ET.

Guenter Butsheck was tasked with the biggest restructuring exercise.

"We are working on productivity through skill development. Mostly 2,000 of the flexi workforce has been reduced and is expected to reduce further. We are trying to minimise the fluctuations to rationalise the workforce. We have about 30,000 blue-collar workers, so there will be a 10% reduction across all plants put together,” Chandel told ET.

During its overhaul task, Tata Motors eliminated 14 layers of management to five.