When contacted, Sterling Cellular chief executive officer Nalin Tikoo confirmed that the company had embarked on a cost-cutting exercise. He added that these people had left of their own accord, "in order to take up new challenges outside".

Tikoo added that the departure of these key executives would have no adverse impact on the company's operations. "We have to gear up to renewed competition including Mahnagar Telephone Nigam Ltd and some people do not accept new positions and the changed environment," he said.

In another related development, a strategic investor is also expected to join Sterling soon, given that the five-year lock-in period clause for the metro cellular operators expired this Monday.

Sources said that Mumbai cellular operator Hutchison is one of the frontrunners for entering into a strategic alliance with the company.Sources said that four vice-presidents - Atanu Mandal, Nawaid Khan, SK Srivastava and Brij Mathur - had parted ways with the company. Mandal was looking after marketing, Khan was the sales head, Srivastava was in charge of human resorces and Mathur was in charge of commercial department in the company. The other executive to leave was a senior manager audit.

Sterling Cellular Ltd is a joint venture between Essar Group and includes strategic foreign investors who hold 40 per cent of the equity. As per information available with the Department of Telecom (DoT), the investors are Cellular Communication International Inc. of Mauritius holding 8.15 per cent, Mobilvest of Mauritius holding 33.52 per cent, Euro Pacific Securities Ltd with 2.44 per cent and Prime Metals Ltd with 4.69 per cent.