BSNL Is All Set To Lay off 54,000 Employees

Must Read

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of...

Tesla First Cancels Return Policy And Now Cuts Warranty Period

Just last week Elon Musk surprised everyone by cutting the price of Tesla Model S twice in...

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

Mobile Internet Speed In India: From Bad To Worse [REPORT]

Languishing. And la…g…g…i…n…g. The sorry state of the desi internet in India. In a...

Google Boots Out 3 Immensely Popular Android Apps from Play Store: Questions About Content Policing Resurface

With such a flourishing wilderness of Android apps on the Google Play Store, there is every likelihood of encountering something seemingly innocuous...

Reliance Future Group Deal In The Soup: SIAC Orders To Put The Deal On Hold

When Reliance agreed to acquire Future Group for $3.4 billion, recently, the share of Reliance Industries Limited rallied on the stock market....

Can Facebook Be Trusted For Newly Announced Hosting and Shopping Services?

Every coin has two sides. For Facebook Inc. (NASDAQ:FB), the positive side says that it has launched interesting, new features to further...

When the Going Gets Tough, the Tough Gather Online

Tech shows; we all know them, love them, and wish we could get to them. Unfortunately, that's not always possible. Or is...

Flipkart, Amazon Hurtle To Secure Their Slice in Aditya Birla Fashion

The battle conch for the festive season has already been blown. Now in a bid to take control of a new frontier,...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This