Tata Group has announced it will close three plants in New Jersey and Texas.
The company has hired 3,200 workers since it began operations in the country in 2013, and expects to hire another 3,000 workers at its plants in Arizona and Texas in the coming months.
The companies announcement came after Tata’s head of IT, Kalyan Joshi, told investors at the Tata Group Annual General Meeting in New Delhi that the company would shut down two plants in North Carolina and North Carolina in 2019.
“This is not about the cost savings.
This is about full automation.
The automation will take place over the next 12 months,” Joshi said.
The US Department of Labor has not yet made a determination on whether Tata will have to pay unemployment benefits to workers displaced by the automating process.
Joshi was asked about the impact on jobs at the plant in Boca Raton, Florida, where he was born and raised.
“The plant is fully automated and that is what we are trying to automate.
That is why we will not be paying benefits.
So, the plant will be fully automated in 2020,” he said.
Tata has also announced plans to expand its operations in Brazil, and plans to open two more facilities in the Middle East and Africa by the end of 2019.
The Indian conglomerate has faced a number of legal challenges in the past.
In March 2018, a federal judge in New York ruled that Tata could not fire workers because of their immigration status, citing the company’s failure to hire them for the jobs they had filled.
The lawsuit was ultimately dismissed in November 2018, and Tata’s Indian subsidiary filed a separate lawsuit challenging the decision.
Tata said in a statement that it will hire 1,500 people in the first quarter of 2020, bringing the total number of employees to about 4,200, according to a report from Reuters.