Labour Crisis at L&T
| Case Code: HROB284 Case Length: 10 Pages Period: 1938-2025 Pub Date: 2025 Teaching Note: Available |
Price: Rs.300 Organization: Larsen & Toubro Limited Industry: Conglomerate Countries: India Themes: Human Resource Planning, HR Planning, HR Policy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In February 2025, India-based multinational engineering, construction, and technology conglomerate Larsen & Toubro (L&T) reported that it was grappling with severe labor shortage across its businesses, leading to a delay in project execution. Expressing concern, Sekharipuram Narayanan Subrahmanyan (Subrahmanyan), Chairman and Managing Director, L&T, said, “As an organisation, we employ about 2,50,000 staff and 4,00,000 labourers at any given point of time. While attrition among staff does bother me, I am more worried about the availability of labourers today.” Reportedly, despite employing 400,000 laborers, L&T ended up hiring an additional 1.6 million laborers annually as the attrition was three to four times in a year at the rate of 10 percent..
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