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Mahindra & Mahindra lays off 1500

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

By PTI in Colombo

  • Published 19.08.19, 1:27 AM
  • Updated 19.08.19, 1:27 AM
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.

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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