Business

Reliance Communications Slashes Employee Count By 94 Percent; From 52,000 to 3,400 People

DIVYIA ASTHANA | 0
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| June 14 , 2018 , 17:00 IST

In a considerably massive reduction, the debt-ridden Reliance Communications on Wednesday admitted to reducing the number of its employees by 94 percent, from the previous 52,000 employees down to 3,400 people only.

"Total number of people in the RCom group: from peak of approximately 52,000 to current 3,400, a reduction of approximately 94 percent," RCom said in a BSE filing.

Reliance Communications was estimated to be at its peak around 2008-10 but is currently reeling under debt of around Rs 45,000 crore. RCom closed its mobile services business earlier this year in January and now continues to provide business-to-business (B2B) telecom services.

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In its filing, the company said that its B2B unit is insulated from the ongoing tariff war in the telecom industry.

"The tariff wars between the incumbents -- Airtel, Idea, Vodafone and the new entrant Reliance Jio continue unabated, further dragging down all key financial metrics of the wireless sector. However, post its wireless B2C business exit on January 2018, RCom is no longer affected by the severe and prolonged wireless sector hyper competition," the filing said.

RCom further said that it was evident from the latest sector revenue report released by the Telecom Regulatory Authority of India that the wireless sector overall appeared to continue in a downward spiral with a revenue decline of over 21 percent on a year-on-year basis. The company added that its overall revenue market size had shrunk by more than Rs 26,000 crore on annualised basis.

"RCom operational business fully insulated from the hyper competition, mega capex requirements, financial stress of the wireless sector," the filing said.