Maruti Suzuki, India's biggest automaker, has cut the number of its temporary workers to cope with a slowdown in auto sales. This was revealed in a report by Reuters.
This comes as a jolt to the Asia's third largest economy, more so as the vehicle industry accounts for nearly half of India's manufacturing output. The vehicle industry is facing one of its worst slowdowns in nearly a decade, with vehicle sales falling rapidly.
In an email sent to Reuters, Maruti Suzuki said it employed 18,845 temporary workers on average in the six months ended June 30, down 6% or 1,181 from the same period last year. The company said jobs cuts had accelerated since April.
Sources also revealed to Reuters that the company would freeze hiring new employees until the downturn reversed.
Maruti Suzuki also clarified that it had not reduced its 15,892-strong more permanent workforce.
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