Ashok Leyland offers VRS to 500 senior executives

Ashok Leyland offers VRS  to 500 senior executives

 Automobile maker Ashok Leyland has offered Voluntary Retirement service for 500 senior officials as on November 30, a top company executive said on Wednesday.

“Roughly 500 executives were offered VRS (Voluntary Retirement Scheme) on November 30, representing about 10 per cent of the executives...,” Ashok Leyland MD Vinod K Dasari told reporters here, at the sidelines of the conference SIMCOMVEC — the eighth edition of SAEIndia International Mobility Conference and first Commercial Vehicle Engineering Congress.

The commercial vehicle major, last month announced the VRS scheme for its employees as part of the plans to cut manpower costs in the wake of continued slowdown. “While the company maintained market share in the last quarter, volume pressures continue and we need to take some definite steps to manage the slowdown. The VRS package will be fair and would provide adequate compensation to any employee who opts for it”, Dasari had said earlier.

Elaborating about the scheme, Dasari today said, the company has undertaken a restructuring exercise and has moved some employees from manufacturing to the marketing and sales department.

“We have moved 50 workers from manufacturing to sales and are planning to move around 300 people to sales. But this is not a permanent initiative...,” he said.

Responding to a query about the launch of its latest commercial vehicle ‘Boss’, he said it was a “overnight success” and the market share grew to 40 per cent in the ICV (intermediate commercial vehicle) segment from the existing 12 per cent. The company is “enhancing” its dealer network.

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