Earthmoving and construction equipment maker JCB India on Friday said it has laid off 400 permanent employees in order to adjust its workforce with dip in demand due to the Coronavirus-induced Lockdown. 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.
“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 told PTI.
The company is witnessing around 80 percent decline in demand for products in May and June as compared with the corresponding period last year, the spokesperson said.
“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.
India has been one of the JCB’s single largest markets since 2007.
JCB India currently employs over 5,000 people and has a network of more than 60 dealers and 700 outlets spread throughout the country.