Companies in India have responded to the challenges of globalization in various ways. One of the strategies to survive in the market was to reduce the cost by reduction in the number of employees with the help of Voluntary Retirement Schemes (VRS). This paper examines different types of VRS offered by the companies in the year 1999-2000 in India. It also examines the effect of VRS on the profitability of companies. Findings are based on the VRS of 30 companies from diverse sectors. Findings indicate that there is no fixed pattern of VRS among companies in India. Different companies adopt different forms of VRS. The implementation of VRS also differs significantly between companies. The results indicate that framing an attractive VRS by offering high compensation to employees is not important. The success of VRS depends on how the scheme is implemented and the perception of the persons opting of VRS and the survivors. The key concerns for the successes of VRS are effective communication, building trust among employees about procedural justice and involvement of multiple stakeholders.