BSNL Is All Set To Lay off 54,000 Employees

Must Read

Superstitions across different countries – An Overview

Some believe that a superstition is anything that people believe that is based on myth, magic, or irrational thoughts. They are beliefs that are steeped in lore or tradition, and it is usually difficult to pinpoint the exact origin. Here is a brief compilation of Superstitions which are prevalent across different countries.

1.5 Million Engineers Pass Out In India Every Year, Fewer Getting Hired [Trends]

Engineering colleges have been springing up like wild mushrooms in India in the last few years. Their number has...

World’s Most Popular Ad Slogans: A Brief List To Inspire With !

Advertisement plays an important role for companies as well as consumers world wide. It gives a seller an opportunity...
adminhttp://dazeinfo.com
An avid industry analyst passionate about Mobile, Technology and Entrepreneurship. A internholic user can be found by "amit6060" on social networks.

Amid the rising competition and an ongoing price war between the operators, India’s largest telecom player Bharat Sanchar Nigam Limited (BSNL) has decided to lay off 54,000 employees, which equals to one-third of the company’s total manpower. It’s also reported that the board of the state-run BSNL has approved the proposal to keep the BSN afloat by cutting down its expenses.

To avoid any panic situation among employees, BSNL has decided to put the decision on hold until the elections are over. It will also help employees to have more time to look out for opportunities outside BSNL.

The proposal was a part of 10 suggestions put forward by the three-member committee formed by the government with a single agenda to find ways to avoid the possible collapse of BSNL. It’s important to note that BSNL is in hot water for some time and failed to process the salary of its 174,312 employees for February month in time. After close consideration, BSNL has accepted 3 out of the 10 recommendation made by the committee, and laying off one-third of the total workforce is one of them.

Advertisements

Trimming down the retirement age from 60 to 58 years, Voluntary Retirement Scheme (VRS) for employees aged above 50 and above, and expediting the allocation process of 4G allocation were the three recommendations approved by the board of BSNL.

The decision to reduce the retirement age alone will result in 33,568 layoffs, which will result in the saving of Rs 13,895 crore over the next six years. Similarly, the new VRS policy will help BSNL save anything from Rs 1,671 crore to Rs. 1,921 crore. However, it’s also estimated that VRS would cost the company about Rs 13,049 crore.

The mounting losses of BSNL, after the advent of Mukesh Ambani, led Reliance Jio, forced the government to form a committee to revive BSNL. BSNL which is now the fourth largest player accounts for 9.76% of the total wireless subscriber base in India. After the advent of Reliance JIo, which resulted in either the death/exit of many small players likes of Uninor, Aircel or the merger of players like Vodafone and idea, BSNL’s revenue is on a constant decline. The company’s revenue tanked by 20% during FY 2017 – 2018. The financial health of the state-run company does not seem to improve in the just ended FY 2018-19 either.

india telecom vendors market share Jan 2019

The layoff of BSNL employees will definitely cause more stress among the employees in the telecom sector. Due to rising competition almost every company has cut down its workforce to reduce its expenses. At the same time, the merger between Vodafone and Idea had left many unemployed as a result of survival-of-the-fittest war among the employees of both the companies. With additional 54,000 employees from the India telecom sector staring at the unemployment now, the future of many job seekers in the telecom sector looks uncertain.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

India the 3rd Worst Economically Affected Nation by Internet Shutdowns in 2019: Report

2019 saw an increasing awareness about internet shutdowns in the Indian population due to unprecedented first-hand experience...

Amazon and Flipkart Under The Lens Of Indian Authorities For Competition Squashing Activities!

The ongoing tug of war between Offline and Online retailers in India seems to be far from over. On Monday, the Competition...

Constant Internet Suspensions In India Affecting Online Transactions and Economy Adversely

In the wake of the highly controversial and prejudiced Citizenship Amendment Act and other related legal developments such as the NRC, IT...

The Current Generation Require Technology In Class To Make The Most Of Future Opportunities

Technology is the current drive for everything. It has influenced all aspects of life, including cultures. It affects the way we live,...

Reliance Jio Offers Free Calls Over WiFi: Activate It Now

Following Airtel’s launch of VoWiFi calling in December 2019, Jio has now started rolling out VoWiFi calling, as well.

UPI Scam: A Man Loses Rs. 1.01 Lakhs While Using Paytm and Google Pay

Facebook finds it itself in the middle of its first scam of the new decade and the catalyst seems to be its...

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