Tata Trusts, which holds a majority stake in holding firm Tata Sons, is reportedly undergoing a restructuring to streamline operational and management expenses.

What Happened: This overhaul includes eliminating the CFO and chief operating officer (COO) roles and reducing the use of external consultants, the Economic Times reported, citing sources.

The cost-cutting initiative reportedly began before the appointment of new chairman Noel Tata, following an internal audit and financial review by trustees. This review highlighted a considerable rise in staffing expenses, estimated at ₹180 crore, and additional costs related to direct implementation projects, raising the workforce cost to around ₹400 crore before 2022.

Direct implementation projects, typically managed directly by the Trusts through contractors as donations, will be minimised and maintained only to meet essential commitments, sources told the business daily. Tata Trusts did not respond to requests for comment.

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Sharing Responsibility: CEO Siddharth Sharma is overseeing the establishment of checks and balances to ensure effective governance and continuous monitoring of these changes, according to the report. By reducing top-heavy roles, Tata Trusts aims to focus resources on core philanthropic missions, using a leaner executive committee for decision-making.

Senior finance experts within the Trusts will handle operations and financial matters to support smooth and efficient management, the sources told ET.

Historically, Tata Trusts has played a major role in sectors such as education, health, and rural development across India. With around 66% of Tata Sons’ equity capital held by Tata family-endowed trusts, operational efficiency has come under greater focus as global philanthropic models evolve towards more agile structures.

Noel Tata, appointed chairman on October 11, now leads the philanthropic arms of the Tata Group. The executive committee overseeing Tata Trusts, established by the late Ratan Tata, continues to manage expenses collectively rather than under a single leader. This committee comprises trustees Noel Tata, Mehli Mistry, Venu Srinivasan and Vijay Singh.

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