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Regular-article-logo Saturday, 23 November 2024

Mahindra & Mahindra lays off 1500

'The only thing that can make a difference is if the government supports the industry for 6-8 months'

PTI Colombo Published 18.08.19, 07:57 PM
Mahindra & Mahindra SUV. In the previous slowdowns, both times the government had given a fiscal stimulus and both times they worked well

Mahindra & Mahindra SUV. In the previous slowdowns, both times the government had given a fiscal stimulus and both times they worked well Source: Mahindra & Mahindra video

Mahindra & Mahindra (M&M) has retrenched about 1,500 temporary workers since April and may be forced to lay off more if the slowdown continues.

“I think from April 1 till now we have removed about 1,500 (temporary workforce)... We are trying not to remove more but if the slowdown continues, we will probably be forced to remove,” M&M’s managing director Pawan Goenka told reporters here.

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However, Goenka emphasised that the concern on job losses would come more from automotive suppliers and dealers and not as much from original equipment manufacturers.

Making a case for a fiscal stimulus package from the government, Goenka observed that a turnaround was crucial for the automotive industry during the ongoing festive season to prevent a significant negative effect on jobs, investment and suppliers who may be forced to declare bankruptcy.

“The only thing that can make a difference is if the government supports the industry for 6-8 months,” Goenka said.

“In the previous slowdowns, both times the government had given a fiscal stimulus and both times they worked well,” he added.

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