Leading solar rooftop solutions provider Vikram Solar has reportedly decided to lay off 320 employees from one of its manufacturing facilities at Falta in the state of West Bengal. The recent layoffs come just ten days after industry veteran Saibaba Vutukuri took charge as the Chief Executive Officer.
Through the means of a media statement, the company said, “The domestic solar manufacturing industry has long been advocating for a level playing field. However, a slowing economy, inconsistent policy implementations, unfavorable trade policies, and liquidity crises have impacted the sector severely in the past few months. Moreover, recent global events have also impacted supply chains.”
With the statement, the company has become one of the key players in the solar space to acknowledge the pain of the slowdown in the renewable energy sector. While the company is undergoing organizational changes, its second manufacturing facility remains operational.
For the newly appointed CEO, Saibaba Vutukuri, the environment at his new assignment is kind of similar to what he was facing at his previous employer Inox Wind.
Assisting the estranged employees, the company has extended its Early Separation Scheme to the 320 employees.
The company statement read, “Consequently, Vikram Solar is making production adjustments in response to market conditions. Unfortunately, this scenario has resulted in a number of difficult but necessary organizational changes. Vikram Solar has extended the Early Separation Scheme to 320 employees from one of the production workforce based at Falta, West Bengal. We sincerely regret the impact this decision may have on our employees and their families. We appreciate the many contributions these employees have made to Vikram Solar and are committed to extending support and treating all employees with respect and dignity as they transition to new opportunities outside the Company. Our delivery and service commitments stand tall and we will do everything it takes to meet these commitments. Our teams are working round the clock to ensure that we address any challenges to emerge as a stronger company. Vikram Solar’s focus remains its utmost respect for its employees and long-term health of the company, with customers in mind.”
Even as most industry experts and insiders, from both smaller firms and big developers, have been continuously signaling layoffs for a while due to the slowdown, the news still comes as a shock to many.
Many even believe that the troubles at an experienced firm should serve as a stark reminder to the government and policymakers that the continuous uncertainty and policy tweaks have not achieved their purpose, and a perfectly solid opportunity for the country in the renewable energy space is being strangled.
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