Mahindra & Mahindra cuts over half of North American workforce, says report

Updated : January 14, 2021 11:56 AM IST

One of the sources said that “hundreds of workers” were laid off since mid-2020, as part of the restructuring.

The lay-offs included two-thirds of Mahindra Automotive North America’s (MANA) staffing, they added.

Mahindra & Mahindra (M&M) Ltd has cut over half of the workforce at its Auburn Hills-based North American unit due to delayed projects amid the COVID-19 pandemic and a legal tussle, Reuters reported, citing sources familiar with the matter.

Though figures were not available for the number of jobs lost, one of the sources said that “hundreds of workers” were laid off since mid-2020, as part of the restructuring. The source also added that the lay-offs included two-thirds of Mahindra Automotive North America’s (MANA) staffing.

According to the M&M website, the unit had over 500 employees in early 2020. Among those who lost their jobs were engineers, staff at the unit in Detroit and sales executives.

M&M, India’s largest SUV manufacturer, has had a long-time desire to enter the lucrative US market.

Commenting on the lay-offs, MANA said in a statement that it had to take the step due to COVID-19 and an International Trade Commission lawsuit which led to an August “cease and desist” order for the Roxor business.

The lay-offs come as Mahindra started reviewing its business last year to conserve cash and continue operations that make money or can be profitable. As part of the review, the company has pulled the plug on its US electric scooter business GenZe. It is also in talks to sell its stake in South Korean automaker Ssangyong Motor, and called off a joint venture with Ford Motor Co.

Since it announced the review in June last year, the company’s shares have surged over 60 percent. They are now valued at over $12.6 billion.

Mahindra has been in a protracted legal battle over an intellectual property infringement case with Fiat Chrysler Automobiles (FCA). This has prevented Mahindra from selling Roxor in the US. However, in December, a favourable ruling ensured that Mahindra can begin selling Roxor again.

Now, the company wants to concentrate on manufacturing large SUVs and electric vehicles for the Indian market, where it faces competition from Tata Motors and Kia Motors.

Mahindra & Mahindra cuts over half of North American workforce, says report

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