Engineering firm Alstom India said it would restructure operations, citing slow down in the power sector. The exercise would result in job cuts, but the company did not disclose the quantum.
According to the company’s 2015 annual report, it had 3,476 permanent employees as on March 31, 2015.
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“Over the last 2-3 years the capital investments in the power sector, particularly in Hydro and Thermal have slowed down,” Alstom India said in an stock exchange filing.
“In addition several projects in Hydro and Thermal sector are stalled due to external factors blocking company’s financial resources and creating large work in progress,” it added.
The firm said the above factors have led to lower sales and revenue generation hurting its financial performance over the last few quarters.
Alstom India said it has decided to right-size the scale of operations, which would result in job cuts to match the current backlog and operating levels.
“This rationalization is being carried on as part of the ongoing steps taken by the company to reduce the operating costs, improve the competitiveness and contain the operating losses. The cost of rationalization would be factored in the financials for the forthcoming quarters,” it added.
The company said the restructuring is not expected to disrupt or adversely affect the commercial production or operations of any unit or division of the firm.
Alstom has two listed entities in India with business interests in power generation and transport - Alstom India and Alstom T&D (transmission and distribution). The units were acquired by GE, as a part of its global $16.9 billion deal to acquire energy assets from French major Alstom.