Mumbai | India’s largest biscuit maker Parle could lay off about 10,000 workers amid economy slowdown, which seems to reflect in other industries such as auto and textiles too.
According to a Reuters report, a downturn in the economy is denting the sales of major industries, forcing companies to curtail production and raising hopes that the government will unveil an economic stimulus to revive growth.
The reduction of sales could mean they would have to lose upto 10,000 workers.
“The situation is so bad, that if the government doesn’t intervene immediately… we may be forced to eliminate these positions,” Mayank Shah, category head at Parle, told Reuters.
Parle, founded in 1929, employs about 1,00,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants.
He said that consumers in India are extremely price- sensitive, and a slight alteration in the quantity or price to result in a massive change in their purchasing behaviour.
Parle, according to the report, had requested former Finance Minister Arun Jaitley, under whose regime the Goods Services Tax (GST) was rolled out, to reduce the tax on biscuits.
The consumer goods industry, especially in the rural areas, is affected due to the slowing economy.