Tata Motors Workforce Shrinks 3% in FY25 Amid Vehicles Demand Dip

Tata Motors workforce decreased 3% in the financial year 2025 compared to the previous fiscal year, a reduction that hasn’t been seen in the past five years. The total employee count of the automaker decreased from 60,113 in FY24 to 58,442 in FY25, the Mint reported, citing the company’s annual report. The development comes at a time when Tata Motors is struggling with sales, as the demand for its cars, trucks and buses have witnessed a sharp decline. 

However, the company said that the decrease in the workforce has no link to the current state of business. 

“The change in non-managerial personal is a year-end position and not representative of the underlying business fundamentals,” Tata Motors spokesperson told the Mint.

Tata Motors revenue grew marginally by 1.3% to Rs 4.39 trillion in FY25, driven by a decline in sales in both domestic and international market. Net profit in the same fiscal year nosedived 11% to Rs 28,100 crore from Rs 31,800 crore in FY24. 

In Q4 FY25, the Tata Group automaker reported a 51% decline in a consolidated net profit to Rs 8,470. The auto giant posted consolidated net profit of Rs 17,407 crore in Q4 FY25. 

The company attributed the dip in sales to tariffs and geopolitics-driven uncertainty, which made the operating environment challenging. 

Tata Motors domestic sales decreased 7% to 70,963 in April 2025 from 76,399 in April 2024. The decline witnessed in the commercial vehicle (CV) segment was greater than that in passenger vehicles (PV). The total domestic CV sold in April 2025 stood at 25,764 compared to 28,516 in April 2024, marking a 10% dip. The total PV, including electric vehicles sold in April this year, was 45,199 compared to 47,883 in the same month of the previous year, witnessing a 6% decline.