Parle Products Pvt Ltd, India's largest biscuit maker, may soon have to fire as many as 10,000 workers amid an economic slowdown, according to a Reuters report. The downturn has been affecting sales of everything from cars to clothing, forcing companies to curtail production.
There has also been a sharp drop in Parle's biscuit sales, which means that the company may have to slash production. This, in turn, will result in layoffs of 8,000-10,000 people. Reuters quoted Mayank Singh, category head at Parle, as saying in the report.
"The situation is so bad, that if the government doesn't intervene immediately...we may be forced to eliminate these positions," he said.
Parle employs about 1,00,000 people. These include direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants. It was founded in the year 1929.
According to Parle's category head, demand for the popular biscuit brands such as Parle-G had been worsening ever since the government introduced the Goods and Services Tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as Rs 5 a pack. Higher taxes have forced Parle to offer fewer biscuits in each pack.