Voltas Ltd has announced a voluntary retirement scheme to slash 300 jobs and has plans to cut an equal number as part of its efforts to shed flab and become leaner to take on competition.

"We are aiming to reduce 300 posts through the VRS, which will be available to all employees, excluding those from the Hyderabad plant," its vice-president (finance), M M Miyajiwala told reporters in Mumbai.

The VRS scheme for the Hyderabad plant would be announced on a later date and the company aims to slash 300 more jobs there also, he said adding, the VRS is available for the employees who are above 40 years of age and have completed 10 years of service.

In the fifth VRS since 1996, the company was mainly looking to reduce posts in the manufacturing and the outgo per employee was estimated to be about Rs 400,000-600,000, he said and added that the VRS round would be the last.

The company has around 3,900 employees including 1,700 at its Hyderabad plant.

Meanwhile, it has also reached a pact with the employees union under which both the parties have agreed to withdraw pending litigation and have extended support to the VRS scheme.