L&T Finance Sheds 550 Jobs
Co sacks mid- to senior-level managers across verticals, citing high costs and muted business
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.