The merger of Vodafone India and Idea Cellular may now become a nightmare for some of its employees as a major restructuring exercise is set to take place.
Idea and Vodafone, who have received all clearances for the merger except from the telecom department, currently employ roughly 11,000 and 10,000-plus people, respectively and the merged firm could shed about a fourth of the workforce, according to a report in The Economic Times.
Source told the paper that the merged firm could layoff around 5,000 employees, including those who fall into the bottom quartile in the performance assessment during this appraisal season as well as profiles who have a mirror image in the two firms.
Industry experts expressed concern about those employees who are going to get the boot. They are likely to face a tough time to find jobs within a vastly shrunk telecom industry that has already under a lot of pressure.
Asked to comment over it by the paper, a Vodafone spokesperson called it “pure speculation and totally untrue”. He said that no decision had been taken about the workforce of the merged entity. “Although it is fair to assume that employees will benefit from the opportunities that arise from working for a significantly larger operation,” said the spokesperson.
It is learnt that both the companies are making losses amid huge revenue pressure and a combined debt of around Rs 1,20,000 crore. – Money Control