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M&M calls layoff reports 'baseless' and 'speculative'; says let go 48 associates due to redundancies

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Presenting the “facts” in a release, the company said they had “let go 48 associates” over the past 12 months “due to redundancies”. “In addition, 98 associates have been given six months to find a role

M&M calls layoff reports 'baseless' and 'speculative'; says let go 48 associates due to redundancies
Reacting to several news reports on Wednesday about the company laying off around 300 employees in its automotive and farm equipment sectors, Mahindra and Mahindra Limited (M&M) on Thursday clarified that the concerned “articles are baseless and purely speculative”.
Presenting the “facts” in a release, the company said they had “let go 48 associates” over the past 12 months “due to redundancies”. “In addition, 98 associates have been given six months to find a role. The combined total (across all levels) is 1.3 per cent of white-collar associates within the auto and farm sectors,” it said in a release, a copy of which is with CNBC-TV18.
“As a policy, the company does not comment on media speculation or rumours. However, we are very concerned about this misreporting, as we truly value our employees and have taken numerous steps to ensure their safety, health and financial well-being,” the company said in a release before presenting the “facts” in it.
On reports that there is a clear indication that the firing spree will spread to Mahindra Research Valley, it clarified that “there are no such plans”. “In fact, we continue to recruit talent… as we ramp up our EV (electric vehicle) strategy.”
On reports that there has been no salary revision, M&M said it increased pays across the board.
Refuting the reasons for layoffs being its poor performance, the company said “M&M has reported strong financial results in Q3. “Consolidated Q3 PAT (profit after tax) before exceptional items was up 305 per cent versus the prior year. M&M stock price is up 200 per cent since April 1, compared to 73 per cent for Sensex,” it said.
M&M added that not a single blue-collar worker has been laid off to date. It also highlighted the steps taken during the pandemic for the safety and well-being of its associates like establishing quarantine centres, picking up the cost of all medical treatments, providing a monetary allowance for connectivity from home and so on.