As per the recent news in the telecom industry, there will be a huge employee layoff in the telecom sector. More than 60 thousand employees are going to become redundant by the end of this fiscal. Although there has been employee downsizing in the past, it was never these many people that have been affected.
However, according to some sources, the telecom companies will start hiring employees for their updated digital technologies in 2019. Nevertheless, the impact of the layoff can’t be ignored at all.
As per a staffing company, the employees will lose their jobs because the designations are being abolished by the companies. On the one hand, one of the staffing companies assumes that 60 thousand posts will become obsolete. On the other hand, another staffing company claims that the number can be around 75 thousand. The consolidation activities within the companies are the primary reason for the demolition of the jobs in the coming year.
The employees who are likely to lose their jobs are from financial functions such as billing and recovery. The employees in customer support area will also witness a major termination. Automation along with consolidation is also another reason behind the decision of the telecom companies.
In the next few months, approximately 8,000 employees who are in customer support and around 7,000 employees who are in financial assistance will lose their jobs.
There are multiple factors that have caused the loss of jobs in the telecom industry. As soon as Reliance Jio entered the market in 2016, the existing telecom companies faced a stiff competition. As a result, Aircel and Reliance Communications have become defunct. Idea Cellular and Vodafone India have merged scraping away nearly 5000 jobs across the country. Tata has also written off approximately 28 thousand crore INR recently from the telecom segment.
However, even though the situation is quite bad, there is still hope in the next year. The telecom companies are expanding 4G networks rapidly and these companies are also looking forward to deploying 5G services. Therefore, they will need more workforce for the implementation of new technologies including big data, Internet of Things or IoT, artificial intelligence etc.