| Maruti Udyog Ltd, the country's largest carmaker today said it slashed as many as 1,251"" 27 per cent of the total workforce""employees through a recently launched voluntary retirement scheme (VRS). |
| The employee strength of the company, which became a subsidiary of Suzuki Motor Corporation, Japan last year following the offloading of the government stake, has now come down from 4,606 to 3,355. |
| The automaker is trying to be leaner and younger with a more productive workforce amid growing competition in the local market. |
| After two VRS offers, Maruti has been able to reduce the workforce by 40 per cent in a little over two years. The first VRS was launched in October 2001 when it had 5,646 employees on its roll. The leaner structure would help the company reduce its production costs, said industry sources. |
| "There were 4,606 employees in the company prior to the launch of the scheme. After the VRS, the number came down to 3,355," the carmaker said in a statement. It added that the payback period would be just over two years. |
| The VRS was offered in two phases for non-unionised as well as unionised workers. |
| A total of 276 non-unionised employees, including supervisors, executives and managers, had opted for VRS in the first phase from September 22 to October 18. In the second phase, 975 unionised workers, including technicians and assistants, availed the offer from November 19 to December 6. |
| In the first VRS offer, 1,050 employees""9 per cent of the workforce""opted to call it a day at the automaker. The company's employee strength had come down from 5,646 to 4,596 after the offer. |
| But company executives declined to comment on the ideal size of workforce the automaker was aiming at. Maruti's competitors have a more leaner structure, an advantage gained from their late entry into the country. |
Getting leaner
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A fourth of Maruti workers take VRS
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First Published: Dec 23 2003 | 12:00 AM IST
