India’s oldest and troubled automaker, Hindustan Motors who declared suspension of work at it Uttarpara plant on May 24 has reportedly, terminated 240 of its managerial staff. The company however, as retained some staff in disciplines such as HR and finance.
The termination notice issued to the managers that was signed by HR head read, “Your employment will come to an end with expiry of your notice period, as applicable to your grade. You will be paid your accrued entitlement and other out-standings.”
The company had provided employment to around 2,394 workers. A company personnel said, “Managerial restructuring has been an on-going process over the last 2 to 3 years and continues in an effort to optimise work flow whilst retaining staff that remains critical to the continuity of operations.”
Hindustan Motors and its plant in Uttarpara have been in the news a number of times this past few months, due to the critical shortage of funds. Earlier in May, the company was reportedly, looking for investors to revive the loss-making plant. By the end of May however, Hindustan Motors halted the production of the Ambassador sedan indefinitely.
A couple of years ago, the plant was producing 700 to 800 Ambassador sedans per month. However, in April 2014 the facility was able to churn out a mere 100 units, due to lack of funds. The facility has been facing losses to the tune of Rs 7 to 8 crore per month. The amount of huge losses with almost no cash inflow in the company, compelled the automaker to suspend all work and operations at the plant.