The merger between Vodafone India and Idea Cellular will deliver significant, cost-saving synergies but has taken its toll on the number of people the company’s employ
Vodafone India and Idea cellular have made over 8,000 people redundant since the announcement of their intention to merge, according to reports in the Indian media.
Whilst the merger will undoubtedly provide the companies with huge cost saving synergies, it might not have been such a positive step for India’s workforce. The Business Standard reported that the two companies had shed around a third of their total workforce this year.
Speaking after the launch of the newly merged Vodafone Idea, the company’s chairman Kumar Mangalam Birla said that the company would enable the evolution of a "new-India".
“We have created India’s leading telecom operator. It is truly a historic moment. And this is much more than just about creating a large business. It is about our Vision of empowering and enabling a New India and meeting the aspirations of the youth of our country. The “Digital India”, as our Honourable Prime Minister describes it, is a monumental nation- building opportunity. As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale and standards,” he said.
Vodafone Idea is now India’s biggest telco, with 408 million subscribers, eclipsing rivals Bharti Airtel and Reliance Jio.
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