Tata Trust is initiating a significant internal restructuring aimed at reducing costs and operational expenditures, according to a report from the Economic Times, which cites sources familiar with the situation. This restructuring will involve the elimination of several senior positions and a decrease in reliance on external consultants. Notably, this decision was made before Noel Tata was appointed as the new chairman of the Tata Trusts.

The move follows an internal audit report that revealed overstaffing, which raised costs by Rs 180 crore. In 2022, additional expenses related to direct implementation projects pushed the total workforce cost to Rs 400 crore. The trustees also reviewed this report.

Direct implementation projects—conducted by the trust through contractors as part of its donations—will be minimized and confined to essential obligations. However, Tata Trusts did not comment on the matter.

According to the Economic Times, CEO Siddharth Sharma is putting checks and balances in place to enhance governance and ensure ongoing monitoring of processes. Tata Trusts is restructuring its management by eliminating top-heavy roles to allocate resources more effectively toward its core philanthropic missions and to lower administrative costs. The organization plans to increasingly rely on a streamlined executive committee for decision-making and governance.

“One of the sources stated, ‘A trust should function as a servant to the public. We must be true custodians of the funds and assets within the trusts. The charity is intended for the public, not for the staff. Ceremonial roles at high costs are unnecessary, and proper checks and controls are being established.’”

Tata Trusts has senior finance professionals and internal talent to ensure smooth operations and efficient account management, according to the sources cited by the Economic Times.

Anand Desai, managing partner at DSK Legal, mentioned that while the scale of operations influences the need for operational costs, including senior staff, maintaining cost awareness is crucial for philanthropic organizations. “Beneficiaries of such philanthropy can be held accountable through documentation, supported by appropriate oversight from the board and Trust employees,” Desai noted. “Cost pooling is also a commonly used strategy, and domain experts can selectively enhance efficiencies.”