Earthmoving and construction equipment manufacturer JCB India on Friday announced that it has laid off 400 of its permanent employees in order to cope with the dip in demand due to the coronavirus lockdown.
The company told the news agency PTI that the demand for its product witnessed a steep decline of 80 per cent during the months of May and June as compared to 2019. "The construction equipment sector, like many other sectors, has been adversely affected due to COVID-19. As construction activity slowed down, there was almost no demand for construction equipment in the month of April," a JCB India spokesperson.
"Our business has thus been severely impacted. We have had to take the difficult and painful decision of re-organising our staff strength across levels to tide over this extraordinary situation which has led to 400 job roles becoming redundant," the spokesperson said.
The company said demand for its products in May and June has dropped by 80 per cent as compared with the corresponding period last year due to the current situation. In the last few months, various reports have showed that companies in India and abroad have laid off employees to tackle the negative impact of coronavirus crisis on their financial health
India for JCB has been one of its largest markets since 2007. JCB India currently employs over 5,000 people and has a network of more around 600 dealers and 700 outlets across the country.