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August 27, 2001
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Money > Business Headlines > Report August 27, 2001 |
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L&T to slash managerial strength by 25 per centRumi Dutta Larsen & Toubro is planning to prune its 13,000-plus management cadre by "at least 25 per cent" over the next few years. The total employee strength of the diversified conglomerate is around 25,000. The company has already initiated an extensive analysis of its manpower requirements. Confirming the development, a spokesperson said in a faxed response: "The present employee strength in the management cadre is around 13,269. Over the next few years, we would like to reduce the manpower strength by at least 25 per cent." "A minimum of 10-15 per cent of roles appears surplus in the first analysis and a voluntary retirement package would be offered in the current fiscal," the spokesperson added. L&T executives, however, refused to comment on the estimated cash outgo on the proposed voluntary retirement scheme. They also declined to comment on the savings expected out of the exercise. "The focus is more on improving efficiency rather than on reducing costs," they added. "The initiative is to help employees occupying surplus roles to take responsibility in finding gainful ways of contributing outside the company," L&T executives added. The company's staff expenses have risen marginally to 7.51 per cent of sales last year from 7.29 per cent in the previous financial year. The cash outgo jumped from Rs 5.41 billion in 1999-00 to almost Rs 5.88 billion last year. L&T has a presence in engineering and construction, cement and electrical and electronics businesses. The cement division, which is in the process of being hived off, will see a large reduction in workers but not much in the management grade. The company has recently concluded a VRS programme. Company insiders said a compulsory retirement scheme has been launched for select senior staff, but no comments were available from L&T on the issue. Powered by YOU MAY ALSO WANT TO READ:
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