Mahindra & Mahindra fires 300 executives as slowdown stings
On a restructuring move, India’s automotive giant, Mahindra & Mahindra has fired around 300 management executives since the start of this calendar year as the slowdown in the domestic automotive industry exacerbated, with the pandemic taking its toll.
According to Business Today reports, the pandemic has devastated auto-industry growth. The automotive division of Mahindra has suffered a debilitating 27.52 per cent decline in sales in this fiscal so far. Industry volumes have shrunk by 13.2 per cent.
According to Business Today report, In that the exit of many senior management executives, including VS Parthasarthy, who was President of Mahindra’s mobility services sector and member of the group executive board, are part of the nearly 300 executives that have been eased out by the firm since January. Other senior level executives included Prahlada Rao, who was head of business planning at Mahindra.
Rajeshwar Tripathi, CHRO, Automotive, and Farm Sector, M&M Limited said, “the transformational and future-ready work is underway within the company. We have taken up initiatives for simplifying the organization for greater agility, higher productivity, and accelerated growth,”
“These initiatives have been carried out in an associate-friendly manner. There have been some redundancies, but in almost all cases we offered alternate positions across the organization. In a handful of cases we had to take the difficult decision to separate.” he added.
“There have been no separations in the workmen category. There has been no rationalisation or salary cuts at any level. Even in 2020, a difficult year because of the pandemic, we announced salary increases at all levels and paid out full performance pay,” Tripathi added.
“As you are aware, the Mahindra Group has a robust talent management process. Nurturing and growing internal talent is extremely motivating and inspiring for associates. We believe that our strategy of transitioning internal talent into key positions continues to serve us well.” he added.