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Voluntary Retirement Schemes (VRS) are among the least studied phenomena in both business and academia. Despite its increasing popularity, field-based scientific literature on VRS is sparse in India. International literature on organisational downsizing has focused on three issues: the impact on those who have lost their jobs; the impact on those remaining; and on how to downsize effectively. The case study focuses on the VRS introduced by Steel Authority of India Limited (SAIL). Since financial year 1998-1999, SAIL had been incurring huge losses. One of the major reasons for the losses was its high manpower cost. To deal with the situation, McKinsey advised SAIL to reduce its workforce from 0.17m to 0.1m by 2003. The case deals at length with various VRS schemes that SAIL launched its staff education initiatives and the problems faced by the company while implementing VRS. The case is intended for MBA/PGDBM level students as part of their Human Resources Management (HRM) curriculum. The case throws light on the various issues that an organisation has to deal with, while implementing VRS.