Days after Ratan Tata’s death, Noel Tata brings major changes in Tata Trust, removes two senior position, here’s why Noel Tata took this decision

According to reports published in the Economic Times, the Trust made this decision to reduce expenses and cut the management costs of the company. Tata Trust holds a 66% stake in Tata Sons, indicating that it maintains significant control over the companies.

After Ratan Tata’s demise, Tata sons chairman Noel Tata took a few decisions that surprised many. After taking over the reins, Noel Tata has abolished two posts of the company which are Chief Finance Officer (CFO) and Chief Operating Officer (COO).

According to reports published in the Economic Times, the Trust made this decision to reduce expenses and cut the management costs of the company. Tata Trust holds a 66% stake in Tata Sons, indicating that it maintains significant control over the companies.

After Ratan Tata’s death on October 9, Noel Tata was made chairman on October 11 of Sir Ratan Tata Trust and Sir Dorabji Tata Trust.

It was mentioned in the report that the process was already underway to abolish these posts and the Trust’s board had also given its approval for the same. After Noel Tata took charge as chairman, the company is making some structural changes. An internal survey and audit report revealed that the total cost over management has surged to Rs 180 crore.

Last week, Livemint reported that the members of the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust can remain in their positions permanently.