Tata Trusts is reportedly planning to do restructuring internally to help streamline operational and management expenses, media reports said. The overhaul will see the trust remove the positions of chief financial officer (CFO) and chief operating officer (COO) from the organisation.
According to a report by the Economic Times, the trust will also cut down on its reliance on external consultants. The report cited people aware of the matter and said that the decision comes after an internal audit and financial review conducted by the trustees.
This review found that staffing costs soared and hit nearly Rs 180 crore. Further expenses related to direct implementation projects also pushed the overall workforce cost to Rs 400 crore in the years prior to 2022, the report said. However, these cost-cutting measures were initiated much before Noel Tata was appointed as the chairman of the Trust.
The direct implementation projects are typically executed by the trust directly via contractors as a domain. However, these projects will now be slashed to a minimum and only to complete the obligations.
The Trusts also plans to redirect resources by cutting down on senior management roles towards core philanthropic missions and reducing the administrative overhead.
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The report quoted sources and noted, “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.”
Tata Trusts is the umbrella company of several philanthropic entities of Tata Group and works in several sectors such as health, rural development, education, skill development, etc.