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Birla VXL to cut 400 jobs
E-Tex Staff - Kolkata

Birla VXL, the worsted woollen and wool-blended fabrics producer from the S K Birla stable, has decided to reduce its staff strength by 400 within the next three months, company president, Mr R S Singhvi said. Mr Singhvi said at a press conference here recently that the reduction in head count is part of a cost-cutting exercise undertaken by the company. It is necessary to wipe out the company’s accumulated losses, he added. The company has already reduced its staff strength to 1,250 from 3,000, Mr Singhvi said.

Mr Singhvi, who refused to quantify the accumulated losses, said the headcount reduction will enable the company to reduce recurring costs and interest burden. “We have undertaken a financial restructuring plan,” he said. Mr Singhvi said the Birla VXL management is repositioning its two brands - Digjam and OCM - both in the domestic and international markets. “We expect to achieve a 10 per cent growth in domestic sales during the current financial year,” he said. He also said the company has been maintaining a stable export growth of 35 per cent for the last couple of years.