After observing losses in their units, Tata Motors plans to remove 1100 jobs. This decision is taken after its luxury unit at Jaguar Landrover raised the cost-cutting target. This is due to the impact of the coronavirus outbreak.
The target set by Tata Motors is to save 5 billion pounds by March 2021 at its Jaguar unit. The company CFO, Mr. Balaji announced this. He further added that 3.5 billion pounds of savings are already achieved at the unit.
Why remove jobs?
With these job cuts, the capital expenditure will also reduce to 2.5 billion pounds, for this financial year. This is more than 3 billion pounds, the company has spent in the previous years.
The company expects 1100 employees to be affected by this.
Mr. Balaji told reporters that the company posted a fourth-quarter loss. The main agendas for the company are to conserve cash, prioritize capital expenditure. The company is also looking to do targeted investment in appropriate areas.
Tata Motors is actively reviewing all of its businesses. It plans to remove those that do no add strategic value anymore. The company has a target to save 60 billion pounds by the fiscal year 2021.
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In the fourth quarter, the company observed a net loss of Rs.98.94 billion. This is mainly due to the effects of coronavirus pandemic. The company’s total revenue also fell by 27.7%.
Tata Motors in the international market
The CEO also said that there are signs of improvement in China, which is the biggest market for the company. This is also observed in the United States and Europe. The most number of orders received are for LandRover’s sports utility vehicle Defender and RangeRover’s Evoque.
The jaguar land rover boss Ralf Speth will step down at the end of September. This is the end period of his contract. He has led the company since 2010
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