Owing to a decline in the sale of cars, Korean car manufacturing company, Hyundai Motors India Ltd has announced to slash the jobs of its 2000 temporary workers. According to reports, the company has over 8400 employees, of which around 3,300 are temporary. The auto company is likely to exercise the move in January. As per a company spokesperson, Hyundai may go also for cut in the production by next if the economy does not improve or demand does not revive.

 

In a statement to media, Hyundai informed that it will reduce the number of shifts in the two units near Chennai from five to four and even three shifts in January. Hyundai has estimated that in 2009, exports which contribute one-third of the revenues, will fall 25 percent. As result, the recent decision of cut in production has been taken.

 

Informing more about the production, the company source said that Hyundai produces about 250 cars every shift and 1,600 to 1,800 cars a day. Now if the exports fall drastically and the domestic sales tend to remain average, the company will suffer badly. As a result, it has become important for Hyundai to opt for restructuring. Talking about good export in December, the source said that the main reason is that the orders were placed three months ago when the meltdown had just begun.