Within weeks of finalising its management restructuring, the Tata Motors board has approved a VRS proposal to significantly prune its middle management.

The company is in the process of bringing down the management layers down to five from the existing 14 to cut costs.

The move to bring in a voluntary retirement scheme is the second step towards achieving the goal of creating a leaner organisation. “Tata Motors confirms that as part of the ongoing Organisation Effectiveness project, where we have already finalised the top 2 levels of our management structure, a proposal on VRS package has been presented and approved by the board. Since the exercise for selecting L3-L5 is still under way, it is premature for us to comment on any other specifics at this point of time,” a Tata Motors spokesperson told BusinessLine.

As a part of the restructuring, 120 executives have been finalised for L1 and L2 roles. For the remaining tiers, there would be roles that would become redundant and, therefore, the company is offering a severance package to such employees, the spokesperson said.