India’s largest carmaker Maruti Udyog has announced that it will be offering an early retirement plan for all permanent employees, AFP reports.

Maruti, in which Japan’s Suzuki Motor Corp. holds a majority stake, informed the Bombay Stock Exchange its board of directors had approved the voluntary retirement scheme (VRS) proposal at a meeting on Wednesday.

“The board of directors approved the VRS proposal which will be introduced in two phases during this financial year,” said a statement.

“Maruti is focused on improving its competitiveness in various fields in line with which this scheme has been approved by the board,” it added.

This is the second early retirement offer Maruti has made to its employees. The first was made in October 2001 through which Maruti gave a golden handshake to 1,050 employees.

Maruti Udyog Ltd. currently has a workforce of 4,596 engineers and executives. The company did not say how many people it hoped would take up the VRS.