With a combined workforce of 21,000, in a more likely scenario the merger of Idea and Vodafone India is likely to see lay-offs of over 5,000 employees in the next few months as per a leading business daily report. The two companies are facing tough and turbulent times in the telecom sector that has been disrupted with the entry of Reliance Jio Infocomm.
Employee exit is most possible as both the companies look to save on cost, reduce any redundancies and improve workflow efficiency.
Currently both the companies are facing huge pressure on the revenue front due to heavy losses with a debt of as much as Rs. 1,20,000 crores. And in this purview, the nodal team facilitating merger of the two companies suggests to swiftly retrench employees to materialise the deal. The companies' do not wish to begin post merger operations amid such turbulent times with heavy and excess employee base.
The employees likely to face axe in the retrenchment process would include low-performers who are categorized in the bottom-line quartile during the appraisal process. Also, those found carrying similar designations post the merger will be asked to leave including employees in the procurement and supply chain department.
It is to be noted that all of the regulatory bodies apart from Department of Telecom have a given a go-ahead to Idea-Vodafone India merger and the deal is expected to be closed this May.
Also, taking into account the huge lay-off expected with the merger, the fate of employee at these companies shall be left in a lurch as it would be extremely tough to find job in the sector which has already cut jobs by 1,00,000 amid huge revenue losses.