2 weeks Ago
Tata Trusts is conducting an internal restructuring to optimize operational and management costs, sources were quoted as saying by The Economic Times. As part of the reorganization, the roles of chief financial officer (CFO) and chief operating officer (COO) are being eliminated, and there will be a decreased reliance on external consultants. The cost-cutting measures were initiated well before Noel Tata was appointed as the new chairman of Trusts, sources told ET.
The decision comes after an internal audit and financial review by the trustees revealed a significant increase in staffing costs, estimated at approximately ₹ 180 crore. Additional expenses associated with "direct implementation projects" raised the total workforce cost to ₹ 400 crore in the years leading up to 2022, according to sources. The trust will also minimize direct implementation projects—those carried out directly through contractors as donations—and only undertake them to meet essential obligations, they added.
They further said that direct implementation projects—carried out by a trust through contractors as donations—will be minimized and limited to fulfilling essential obligations. “A trust is supposed to operate like a servant of the public. We have to be true custodians of the money and property within the trusts.
The charity is for the public at large and not for its own staff. We don’t need ceremonial posts at high costs and, hence, proper checks and controls are being put in place,” one of the source was quoted as saying. According to the sources mentioned, Tata Trusts has seasoned finance experts and skilled internal staff to ensure smooth operations and effective account management.
About Tata Trusts Tata Trusts, the overarching body for the Tata Group's various philanthropic organizations, has long been instrumental in areas like education, healthcare, rural development, and other sectors across India. However, its operational costs are facing increased scrutiny, especially as global philanthropic models move towards more agile and cost-efficient frameworks. Approximately 66 per cent of the equity capital of Tata Sons, the holding company of the group, is owned by philanthropic trusts established by members of the Tata family.
On October 11, Tata Trusts appointed Noel Tata as chairman to lead the philanthropic organizations overseeing the group. Tata was already a trustee of the two primary bodies, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust..
