After the passing of Ratan Tata on October 9, Noel Tata stepped in as the new chairman of Tata Sons, a role he took over on October 11. Within days of assuming his position, Noel Tata has made significant changes to the company's structure, sparking discussions across the business community, according to reports.
Noel Tata has abolished two major positions within the company: Chief Finance Officer (CFO) and Chief Operating Officer (COO). This decision, as reported by The Economic Times, aims to reduce expenses and cut down on management costs. Tata Trusts, which holds a 66% stake in Tata Sons, reportedly approved the changes, signifying its influence over the company’s key decisions.
The report suggests that discussions around removing these roles were already in progress before Ratan Tata’s demise. However, with Noel Tata now at the helm, these restructuring plans are being implemented. An internal survey and audit report recently revealed that management costs had increased to around Rs 180 crore, adding urgency to this move.
Additionally, a report from Livemint highlighted that members of the Sir Ratan Tata Trust and Sir Dorabji Tata Trust are now allowed to hold their positions permanently.
As Noel Tata reshapes the company, industry experts are watching closely to see how his leadership will influence Tata Sons in the coming years.
