New Delhi: Tata Trust is going for a major internal restructuring to trim costs and reduce operational expenses, an Economic Times report said quoting people who were familiar with the development. According to the report, several top jobs will be eliminated and dependency on external consultants is also being cut.Notably, this decision was implemented before Noel Tata was appointed as the new chairman of the Tata Trusts. The decision was taken after an internal audit report highlighted overstaffing, increasing the cost by Rs 180 crore. In 2022, the additional expenses associated with direct implementation projects increased the total workforce cost to Rs 400 crore. This report was also reviewed by the trustees.Direct implementation projects—conducted by the trust through contractors as part of its donations—will be minimised and limited to essential obligations. However, the Tata Trusts did not provide any comments on the issue.As reported by the Economic Times, CEO Siddharth Sharma is implementing checks and balances to enhance governance and ensure continuous monitoring of processes.Tata Trusts is restructuring its management by reducing top-heavy roles to allocate resources more efficiently toward its core philanthropic missions and lower administrative costs. The organisation plans to increasingly depend on a leaner executive committee to guide decision-making and governance.“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,” said one of the persons cited. “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 has senior finance experts and internal talent to ensure smooth operations and the efficient handling of accounts, the people quoted earlier said to Economic Times.Anand Desai, managing partner at DSK Legal, told the Economic Times that while the size and scale of operations will determine the necessity for operational costs, including senior staff, cost consciousness is essential for philanthropic organisations.“Organisations that benefit from such philanthropy can be made accountable through documentation, with appropriate oversight by the board and employees of the Trust,” said Desai. “Cost pooling is also a method often used, and domain experts can also selectively add to efficiencies.”
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