ITC lays off 40 senior, mid-level executives

NEW DELHI: Kolkata-based cigarette and FMCG major ITC has fired around 40 senior and midlevel managers from several departments over lack of satisfactory performance at a time when it faces pressure on revenues, said people familiar with the development.
A spokesperson for ITC confirmed the development to TOI, but refused to divulge details such as the department from where the people were laid off."ITC engages in a Talent Review on an ongoing basis. This review highlights specific areas in which people capability needs to be enhanced and management developments efforts are directed towards this objective. The review also highlights areas where talent needs to be acquired from the market in order to crash learning time (especially with entry into new categories lines of business) and to enhance organisational capability in order to enhance competitiveness," the spokesperson said.

"The review also calls for disengagement and outplacement of people who are not capable of meeting the increased demands on their roles as a result of changes in the competitive context. In such cases (which occur more by exception) separation is done in a manner that protects the dignity of the individual and efforts are made to ensure that he/she is able to find suitable alternative options. These steps that follow the ongoing talent review ensure that the quality index of management is secured and enhanced," an ITC spokesperson said.

ITC's move comes a few months after beverage maker Coca-Cola laid off around 4-5 per cent of its workforce in India due to cost-cutting measures. ITC has been under pressure with regards to volumes of its cigarette sales. During March quarter, its total income did not meet analysts' estimates and it witnessed a decline in cigarette volumes.