1. IT layoffs redux: Telecom sector may cut 40,000 jobs this year, Reliance Communications says

IT layoffs redux: Telecom sector may cut 40,000 jobs this year, Reliance Communications says

A senior industry executive painted a bleak scenarios for the near future of employees in the Indian telecom sector, saying that 30,000-40,000 of them may be asked to go this year.

By: | Updated: June 2, 2017 5:56 PM
About 30,000-40,000 people in Indian telecom sector may lose jobs this year owing to the huge pressure the industry is in. Image: Reuters

Indian telecom companies, under intense competitive pressure from Reliance Jio, have not only suffered a terrible revenue loss over the last two quarters, but have also been forced to trim their workforce heavily to keep their operations viable. A senior industry executive painted a bleak scenarios for the near future of employees in the Indian telecom sector, saying that 30,000-40,000 of them may be asked to go this year.

The news could come as a blow to Prime Minister Narendra Modi, who is already facing a challenge from huge job losses staring in the face of techies in the Indian IT industry in wake of various challenges to the business, while his government fields questions about “jobless growth” of the country over the last three years of his rule.

Indian telecom companies have laid off about 10,000 people over the last one year, Punit Garg, President, Reliance Communications, said on Friday while giving a presentation to the reporters on the state of the telecom sector. This is not all. Garg further said that another 30,000-40,000 people in Indian telecom sector may lose jobs this year owing to the huge pressure the industry is in.

Earlier last month, Tata Teleservices laid off 500-600 people from sales and other related functions, and from across locations in the country, In yet another sign of the increasing stress on the telecom industry. The company had said staff was let go to tide over difficult times in the hyper-competitive telecom market.

Indian telecom industry is witnessing an intense tariff war triggered by the entry of Reliance Jio, whose disruptive market positioning has left most of the other telecom companies bleeding. The telecom operators are facing tremendous pressure on revenue and profitability, even as the industry’s total debt and liabilities have soared to nearly Rs 8 lakh crore.

Reserve Bank of India, in a recent notification had asked banks to make provisions at rates higher than the regulatory minimum rate, based on an evaluation of risks and stresses in various sectors of the economy. Further, it also asked banks to ensure a quarterly review of the sectors to which they have exposure with an intent “to evaluate the present and emerging risks and stress therein”.

Indian telecom sector has been operating under tremendous pressure after the entry of Reliance Jio into the space, which, with its free-to-dirt-cheap tariff offers has forced the incumbent players to drastically cut their tariffs in order to retain their customer base.

  1. N
    Nagoor Shaik
    Jun 4, 2017 at 12:46 am
    Good job
    Reply
  2. C
    Coffeewala
    Jun 2, 2017 at 9:50 pm
    More farmers commiting suicide in the last 3 years.New jobs not created but more techies are loosing jobs in the last 3 years. Why,......Has the Nation chosen an unlucky PM. His stars may be ruining us.
    Reply
  3. S
    sunil
    Jun 2, 2017 at 7:30 pm
    who is to be blamed for such a job losses , our job is over and not getting new jobs in telecom , companies should reduce fatty ry to higher up to reduce there CAPEX/OPEX and balance the jobs for lower/ top management
    Reply
  4. D
    DAXESH
    Jun 2, 2017 at 6:43 pm
    ry means payment reward given for work
    Reply
  5. D
    DAXESH
    Jun 2, 2017 at 6:42 pm
    ry means ry
    Reply
  6. D
    DAXESH
    Jun 2, 2017 at 6:41 pm
    What I think that How Much ry Drawn by Garg & His Top Executive, If Company Drastly reduced ry of Top Executive & Even some down for other employee than every company can In Average save 500- 1000 Employee Jobs. In turn 40 Company can save the job of 20000- 40000 Employee. Company May reduce also other expenditure to save job.
    Reply
  7. D
    DAXESH
    Jun 2, 2017 at 6:28 pm
    IN MY SENSE IF JOB CUTS THEN IT MEANS PRODUCTIVITY INCREASE (TASK OF SERVICING COMPLETE WITHOUT HELP OF 40000 JOBS CUT) SECONDLY PEOPLE ARE BENEFITED OF COMPE IVE MARKET FOR REDUCING THERE OFFICE & HOUSEHOLD TELEPHONE BILL NEED OF MORE TECHNOLOGY TO PROVIDE BETTER SERVICE BEACUSE INCREASE OF CUSTOMER TO OPERATE THIS TECHNOLOGY IN FUTURE MORE PERSON ARE NEEDED TO INDUSTRY (JOB CREATION).
    Reply
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