Upto 75,000 more jobs at stake as competition intensifies among Indian telcos: Report
- Telecom companies may axe an additional 75,000
jobsthis financial year, say reports.
- Industry consolidation and newer technologies have put several job functions at risk while creating some new opportunities.
infrastructure, retail sales, customer support among job functions that will see maximum impact.
The telecom sector could see 75,000 job cuts by the end of this financial year, according to one report, with most layoffs expected in the financial and customer support segments. Another study has pegged the job cuts at a whopping 90,000, with potential casualties across telecom retail sales, customer support, business and operations and infrastructure segments.
This is in addition to an estimated 50,000 to 70,000 job cuts that have already taken place since 2016, according to Financial Express. For the six months alone ending September, an estimated 15,000 to 20,000 jobs were axed, ET mentioned in a recent report.
Industry competition and consolidation
The telecom sector has been in the midst of a massive shakeup since
Following Jio’s competitive play, several key industry players have also merged or acquired smaller players, which has led to ongoing industry consolidation, creating a wave of layoffs in its wake. The merger of
In the last two years, the number of telecom operators have come down from about 10 to six as of April. The sector could shrink by another 5% to 10% in the next 12 months, Paul Dupuis, managing director and CEO of Randstad India, told Financial Express.
Reliance Communications (RCom) saw a 94% cut in its workforce, while
Meanwhile, government efforts have been afoot to retrain some of the telco workers by pushing them into new skills such as public wi-fi and BharatNet. Newer technologies such as AI are also expected to lead to new roles being created in the industry.