Vodafone-Idea Merger May Result in 5,000+ Job Losses

Must Read

Switch Off Your Amazon Alexa If You Are Working From Home!

Weeks after the widespread of the coronavirus, countries continue to go into lockdown mode for more weeks...

Billionaire Mark Cuban’s Invaluable Advice for Startups in Crisis!

In an interview with CNBC last week, owner of NBA’s Dallas Mavericks, Mark Cuban, spoke out about...

Facebook Portal TV: Once Mocked Widely, Now Sold Out Completely!

Two years go, Facebook Inc. (NASDAQ:FB) released the first device in their Portal video calling series. This...

The merger of Vodafone and Idea may ease out financial stress on the management of both the companies, but will put thousands of employees under the axe. According to sources at ET, more than 5,000 employees could lose their jobs if the merger of Vodafone and Idea is through all the regulatory approvals.

The proposed merger of Vodafone India and Idea Cellular has already been approved by most of the regulatory bodies except telecom department – which doesn’t look like much of a hurdle at this point in time. Little over 21,000 people are employed by both the companies combined and the merger will affect the most who would find themselves at the bottom in the performance assessment during the appraisal due in May.

Both, Vodafone India and Idea Cellular, are struggling with the mounting debt and rising competition. Both the companies are staring at a combined debt of nearly $18.46 billion.

Advertisements

Vodafone Idea Merger: The Survival of The Fittest

While Idea Cellular has denied commenting on the situation, Vodafone has outrightly rejected the claim stating that the merger is is to be concluded and till the management is not evaluating any such strategy.

On the contrary, employees at both of the companies are already exploring the options outside. A person familiar with the situation told us that the fight for the survival of the fittest has already started as most of the mid-level and senior positions are claimed by both sides of the executives. Post-merger, Vodafone and Idea will have to avoid duplication to optimise their revenue books and any ambiguity.

On the other hand, Bharti Airtel and Reliance Jio have set their eyes on some of the performing employees Vodafone-Idea may have to let go as a result of the possible merger. However, the consolidation of the industry due to the advent of Reliance Jio have left employees few very few options to juggle with. Analysts believe that this may also result in a large number of people pivoting their career or settling down with comparatively lesses pay package they used to enjoy before.

The tug-of-war between the employees of Vodafone and Idea has begun. However, analysts believe that as compared to Vodafone, number of employees of Idea Cellular are on the edge. Vodafone is the second largest telecom provider in India with 18.56% market share, followed by Idea that accounted for 17.16% market as of January 31, 2018.

This could be a challenging time frame for all those telecom employees who lose their jobs as a result of Vodone Idea merger. The only thing at this stage could change the equation is dues that DoT has asked Vodafone and Idea to settle before the approval. There is nearly $3 billion pending in relation to licensing fees, spectrum allocation, and spectrum usage charges Vodafone and Idea needs to clear.

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Apple iPhone 9 Launch: Not The Date, The Price That Could Turn Heads!

The much-awaited launch of iPhone 9, aka iPhone SE 2, could take place on Sunday, April 5,...

Ecommerce Players, Including Amazon And Flipkart, To Lose $1 Billion Due To Covid-19?

With India now experiencing a country-wide lockdown for 21 straight days along with the talks of plunging into recession in the near...

Billionaire Mark Cuban’s Invaluable Advice for Startups in Crisis!

In an interview with CNBC last week, owner of NBA’s Dallas Mavericks, Mark Cuban, spoke out about the long-term consequences companies, especially...

The Coronavirus Outbreak Will Change the Business Landscape Permanently!

Make no mistake, the events of the next few days, weeks, and months will have a lasting impact on the global economy...

Facebook To Revamp Their Live Streaming Feature By Adding More Functionality. Know Why!

With the Covid-19 outbreak forcing people to stay indoors worldwide, many people have taken to social media platforms to showcase their lives...

Facebook Users Who Dumped It Earlier Are Returning Back To The Platform!

Facebook Inc. (NASDAQ:FB) is gaining ground and it's no less than a surprise to know who is leading the growth this time!

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This