CHENNAI: Ashok Leyland has offered its employees separation schemes amid an across-the-board slowdown in the automotive segment forcing Original Equipment manufacturers, component makers and dealers to slash costs, cut jobs to shore up margins.

Leyland had floated two schemes on Wednesday. The packages are capped at Rs 30 lakh and Rs 60 lakh, possibly based on experience with the company; the Employee Separation Scheme being an alternative for those who do not opt for the VRS. Employees have been informed that they need to intimate the company before end of August to avail themselves of the scheme.

ET has reviewed a copy of the letter to employees offering the separation schemes.

Ashok Leyland is among a clutch of automakers trying to cut its input costs in a scenario of mounting inventory and slowing sales.

According to the latest press release from SIAM, sales have dropped for the ninth consecutive month; passenger vehicle sales in April-July period has dropped by over a fifth of the number recorded in the same period last year.

On Friday, plant employees at Ashok Leyland’s Ennore factory staged a sir-in protest demanding higher bonus payouts this year. Sources within the factory, told ET, that production was impacted on Friday. Ashok Leyland had announced non-working days and commensurate allowance cuts for employees at its Pant Nagar, Uttarakhand, plant twice last month to align production with demand.

At a results press meet recently, Chief Financial Officer and Wholetime director Gopal Mahadevan had said the company was executing a sweeping cost-cutting programme to rationalise operations and save Rs 500 crore in operational costs this fiscal.

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