L&T Fi­nance Sheds 550 Jobs

Co sacks mid- to se­nior-level man­agers across ver­ti­cals, cit­ing high costs and muted busi­ness

The Economic Times - - Companies: Pursuit Of Profit - Ra­chita.Prasad@ times­group.com

Mum­bai: L&T Fi­nance Hold­ings, the non-bank­ing fi­nance com­pany of the engi­neer­ing ma­jor Larsen & Toubro, has un­der­taken a mas­sive down­siz­ing ex­er­cise and asked close to 550 em­ploy­ees across busi­nesses to go, cit­ing high costs amid muted busi­ness.

So far, the com­pany has asked em­ploy­ees from wealth man­age­ment, oper­a­tions, sup­ply chain fi­nance, cor­po­rate mar­ket­ing, credit hous­ing fi­nance teams to re­sign. They are be­ing of­fered salaries for three months but de­nied bonus and other vari­able pay that they may be el­i­gi­ble for in the year ended March, three com­pany ex­ec­u­tives told ET on con­di­tions of anonymity.

In an in­ter­view to ET last week, L&T Fi­nance’s chair­man Y M Deosthalee had said that the com­pany is plan­ning to ra­tio­nalise its busi­ness and fi­nan­cial prod­uct port­fo­lio. Ex­ec­u­tives in the know said that the down­siz­ing is be­ing done to con­tain costs as busi­ness con­tin­ues to be lack­lus­tre.

“Mid- to se­nior level man­agers across dif­fer­ent teams have been iden­ti­fied and asked to re­sign. We have been told by our su­pe­ri­ors that the em­ploy­ees have been se­lected on the ba­sis of cost to com­pany and that busi­ness has been slow and there is a se­ri­ous need to re­duce costs,” a mid-level man­ager who has been asked to re­sign told ET. L&T Fi­nance did not con­firm the num­ber of peo­ple that have been asked to go. To a de­tailed email query from ET, the com­pany re­sponded by say­ing, “We have our an­nual per-

Pink Slips Time

for­mance man­age­ment sys­tem and all de­ci­sions are taken purely based on per­for­mance and com­pe­tence.”

L&T Fi­nance em­ploy­ees fear there would be an­other list of peo­ple who would be asked to go from L&T In­fra Fi­nance, IT and ac­counts teams.

“My su­pe­rior told me that the com­pany’s size is shrink­ing, busi­ness is slow and cost is high so we have to ra­tio­nalise. At least 550 peo-

from wealth mgmt, oper­a­tions, sup­ply chain fi­nance, cor­po­rate mar­ket­ing asked to re­sign

of­fered 3 months’ salaries but de­nied bonus & vari­able pay

ple are be­ing asked to go,” an­other ex­ec­u­tive who has been asked to re­sign said. L&T Fi­nance has been build­ing a big­ger team with am­bi­tions of turn­ing into a full-fledged bank. The com­pany did not get the cen­tral bank’s ap­proval for a bank­ing li­cense and is now be­lieved to be look­ing at the in­or­ganic route to ac­quire bank­ing li­cense.

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