Business News: As Mahindra’s Sales have dropped down significantly due to the Covid-19 pandemic taking a hit on its business since last year, Mahindra is said to have fired at least 300 Management Executives Employees since the beginning of this year. Mahindra suffered fiscal sales of 27.52% and Industry volume down by 13.2%.
Among the fired, there were many Senior Management Executives including V.S Parthasarathy, the President of Mahindra Mobility and Prahalada Rao who was the head of Business planning at Mahindra. As of now the lay offs took place only in Mahindra’s Automotive and Farming division. But there is fear over indications lay offs might happen elsewhere as well.
Rajeshwar Tripathi, CHRO of Mahindra’s Automotive and Farming sector told that transformational and future ready work is being done inside Mahindra and the lay offs are for greater agility, productivity and simplicity for the future of the organisation. He also said that the lay offs had been done in a friendly manner and many executives were offered alternate positions in the organisation.
Another Senior Mahindra Executive said that these lay offs are a complete bloodbath and this had affected the morale of the organisation as well. He said that firing off Parthasarathy from his position was even unthinkable and he has been a reliable man in the organisation.
Tripathi also told that even during the times of pandemic there was no salary cuts for its employees and we even increased salary of the employees whenever possible. We have done our best till now to retain and maintain the robust talent of Mahindra and Mahindra and now we are in middle of a painful change that is necessary.
A full restructuring is underway in Mahindra and Mahindra now. In 2011, Mahindra acquired a South Korean based Automobiles manufacturing company Ssangyong, but it failed to proceed further with it. So, Mahindra is now looking for potential companies to sell Ssangyong too.