Reebok offers voluntary retirement scheme to 200 employees

Sports goods firm Reebok India, which is in the midst of a restructuring exercise following alleged financial irregularities, has offered voluntary retirement scheme (VRS) to over 200 employees.

A company spokesperson confirmed the move and said that the restructuring may impact a third of its outlets. "Of the current 900 Reebok stores, we estimate that one-third may not be in a position to transfer over to the new business model, which includes comprehensive performance-based commercial terms which we believe will help drive store profitability," the spokesperson said, while adding, the company was looking at a fresh start from 2013.

The company also said under the VRS plan, employees would be offered career support and severance packages based on the length of their association with Reebok. Employees, who were called to Gurgaon on Monday, were taken aback when the announcement was made as most did not know what was in store for them.

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