A slow down in the demand for commercial vehicles has prompted Tata Motors to trim its workforce and cut production, according to local reports.
Press reports in India yesterday (23 October) said the automaker had let the contracts of 400 temporary workers lapse.
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Meanwhile it is thought that the company has also cut by close to 50% the production of its medium to heavy commercial vehicles. One report said that the company had cut production at its Jamshedpur plant from 8,000 chassis a month to 5,000.
In local press, company officials claimed that the workers would be rehired when the situation improved. The company maintained that it was normal procedure to disengage temporary workers when production levels were lower.
