Over 60,000 telecom sector employees may lose their jobs by the end of 2019 as companies look to consolidate their position, reported ET. The figure has been quoted by experts citing on-going optimisation in ancillary equipment and service providing industry as well.
While it will be a huge blow to existing employees, the telecom companies and equipment providing industry is left with no choice in light to technological advancements, which require special expertise in fields such as artificial intelligence and big data.
It may be noted that at least 65,000 telecom industry staffers will lose their jobs by March 31, 2019; these layoffs will most likely affect customer support executives and financial service workers, according to TeamLese Services.
While the job losses will be led to distress among employees, the industry is now planning to hire freshers who are adept with newer technologies in a bid to stay innovative.
Speaking to the business daily, Paul Dupuis, CEO, Randstad India, said consolidation in India’s telecom industry may impact 60,000-75,000 jobs and the effect may continue in 2020 as well. An industry executive, who wished not to be named, said the sector has already let go 15,000-20,000 employees in the last six months ending September 30.
However, Ranjan Mathews, director general of COAI, said the industry has overcome the “worst hump” and is now seeking to hire fresh talented youngsters for AI, big data and 4G network expansion. He added that the first two quarters of FY19 were the worst for the sector in terms of job losses.
He went on to add that there will be a maximum of 5,000 layoffs in the entire telecom industry ecosystem in the two remaining quarters.
It may be noted that the telecom industry has been suffering significantly due to excessive competition which started since 2016. Last year, telecom industry profitability was hit significantly due to the environment of a price war triggered by Reliance Jio’s price disruption. While some companies like Vodafone and Idea decided to merge, Aircel was not fortunate enough.
The ripples of the crunch in the telecom industry were felt deeply by ancillary industries including those in the tower and other network infrastructure providers, retail chains and distributors as well.
The industry which employees around 25 lakh people had to let go 1 lakh people last year due to the continued weakness in the industry. Throughout last year, the attrition rate was significantly high at 20-25 per cent.
However, the reduction of telecom service providers has provided some relief and the industry seems to be inching back to profitability. There are just three major telcos right now: Bharti Airtel, Idea Vodafone and Reliance Jio. All three have strong financial stability and are prepared to incur a loss to stabilise and shield themselves in the long run. – Times Now News