According to reports, which cited persons familiar with the situation, Tata Trusts is presently going through a reorganization process to reduce its management and operating expenses.

As part of this reform, the company is reportedly reducing its dependency on external consultants and eliminating the roles of Chief Operating Officer (COO) and Chief Financial Officer (CFO).

This cost-cutting measure was started before to Noel Tata's nomination as the new chairman. The judgment follows a trustee-conducted internal audit and financial assessment that found a significant rise in staffing costs, which were reported to have reached around Rs 180 crore. According to the cited reports, the workforce costs increased to Rs 400 crore in the years preceding 2022 as a result of the higher expenses from direct implementation projects.

According to reports, these direct implementation projects—activities that a trust performs directly through contractors as part of its donations—will likewise be reduced to a minimum and kept just to fulfill necessary obligations.

Siddharth Sharma, the CEO, is making sure that strict governance checks and ongoing monitoring are ingrained in the procedure.

Tata Trusts aims to save administrative expenses and devote more resources to its charitable endeavors by lowering management levels. A reduced executive committee is anticipated to be essential to governance and decision-making.

Tata Trusts possesses competent finance professionals and internal expertise to ensure seamless operations and effective financial management.

Anand Desai, managing partner at DSK Legal, emphasized that cost-consciousness is essential for philanthropic businesses, even though the scope of operations will define the necessary operational costs, including senior responsibilities. He pointed out that with careful documentation and supervision from the Trust's board and employees, philanthropic organizations can be held responsible. Desai added that smart use of domain experts and cost pooling could further improve efficiency.

Tata Trusts, which oversees a number of philanthropy within the Tata Group, has a long record of working in India's healthcare, education, and rural development sectors. However, its operational expenditures have come under scrutiny as global philanthropic models shift toward more flexible and cost-effective frameworks. The Tata group's holding company, Tata Sons, has more than 66% of its stock capital owned by philanthropic trusts founded by Tata family members.

Under the direction of the late Ratan Tata, an executive committee was formed to keep an eye on expenses, and it will continue to do so. This committee, which consists of four trustees—Noel Tata, Mehli Mistry, Venu Srinivasan, and Vijay Singh—was established to guarantee group management as opposed to individual management.