TATA aggressive on cost cutting; outsourcing, jobs cuts top the agenda
- March 15, 2010
- Business News
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The Tata seems to be aggressive on its cost cutting plans. The company CFO C. Ramakrishnan said the components requirements of the company would be met by the countries from Eastern Europe and China. It is cheaper by 30-40% to produce components in those countries without affecting the quality. The company CFO added, “A year and a half ago, the company sourced 14 to 15 per cent of its components from low-cost countries. Over the last couple of quarters, it rose to about 20 per cent and we hope to take it to 30 per cent.” The company has already lowered the number of employees from 16 000 to 14 000 and it is considering job cuts once again.