A new industry report predicts a sharp increase in the number of job cuts as Indian telcos grapple with challenging market conditions
India’s ailing telecoms sector could make up to 65,000 people redundant by the end of the current financial year, as the sector continues to grapple with ultra-competitive market conditions.
According to a report in the Economic Times of India, the majority of those affected by the job cuts will be in customer support and financial function roles.
As Indian telcos look to consolidate their market position through a series of mergers and acquisitions, workforces are inevitably being streamlined to provide cost saving synergies. Vodafone’s high profile mega merger with Idea Cellular reportedly accounted for 8,000 jobs on its own.
Analysts told the Economic Times of India that they expect the current market dynamics to continue until 2020, with more redundancies expected further down the line.
The figure of 65,000 redundancies for this financial year is a marked increase on last year, when only 20,000 people lost their jobs.
India remains one of the world’s toughest telecoms markets in which to turn a profit, as ultra-fine margins force telcos to make savings where they can.
India’s fixed line sector braces for Jio’s Gigafibre launch
Reliance Jio 2nd quarter earnings surge