Metals and mining conglomerate Vedanta Group was forced to take recourse to "tough" measures like job cuts to protect its businesses in difficult market conditions, a top company official has said.
"Our first and foremost priority is to protect our businesses from very difficult market conditions... We have to make supposedly some difficult decisions," Tom Albanese, CEO, Vedanta Limited said today in response to a query on job cuts.
Vedanta Resources, which has a sizable presence in India in aluminium, iron ore, zinc and oil & gas sectors, has announced slashing nearly 4,000 jobs -- both direct and indirect -- in the country since January this year.
Talking to reporters after declaring earnings for the second quarter which saw Vedanta Ltd's consolidated net profit for the period plunge by 41 per cent to Rs 974 crore, Albanese said uncertainties were there and every other producer was facing the difficult situation.
"I want to focus on the fact that to keep our businesses running, that to keep our businesses producing... We have to make some tough decisions, some structural changes," he said, adding that it was in the interest of the shareholders.
Without divulging more on further retrenchment, Albanese said if the subdued trend continues, the company may have to take some more tough decisions.
The job cuts are taking place at the mining giant's Indian arms Vedanta Aluminium, Balco, Cairn India and Sesa Goa -- the iron ore business in Goa.
Of the 4,000 job losses (approximately), about 2,700 are direct and the rest are indirect.
Balco accounts for 1,000 job cuts and Vedanta Aluminium for around 2,000. Sesa Goa as well as Cairn India have already slashed up to 450 jobs each.
While Vedanta Aluminium, Balco and Sesa Goa have confirmed job cuts, as per information, Cairn India too had slashed jobs.
Earlier, a Vedanta spokesperson had said on job cuts: "Global cost curve has to be kept in mind as we work in unified competitive environment and hence, cost reduction has become need of the hour so as to remain competitive in a global meltdown condition which all of us have to face."
Last month, Balco, part of NRI billionaire Anil Agarwal-led Vedanta Ltd, announced that it had started the process of shutting down its rolling mill in Korba (Chhattisgarh).
The shutdown of the rolling division, which is part of a restructuring exercise by Balco, will result in loss of around 1,000 direct and indirect jobs, it had said.
Vedanta Ltd, earlier Sesa Sterlite, holds 51 per cent stake in Bharat Aluminium Company (Balco), while the remaining is held by the government.
Since February this year, Cairn India has sacked around 450 employees to maintain its top and bottom line as it feels the pinch from a fall in global crude prices.
