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Tata Motors has launched a Voluntary Retirement Scheme (VRS) for 750 of its employees as part of its cost-cutting measure and efficiency drive. Some 300 workers have already chosen the scheme, sources say.

The VRS offer, which was generally perceived as appealing, with generous compensation benefits, was extended mainly in manufacturing and support functions. The company is undergoing a major transformation during the transition from traditional fuel-powered cars to electric cars and new energy businesses, with efforts to optimize the traditional ICE vehicle business.

It fits into a climate that many auto manufacturers are relocating their workforces to respond to shifting market dynamics and the surge in EVs. Tata Motors said that the scheme is voluntary and is meant to offer an honorable solution to the problem of the willing employee.

A bit more clarity is expected in the coming weeks of the company regarding further opt-in. Assuring the long-term growth plans and welfare of the employees, it has been declared that Tata Motors is still interested in its various growth plans.