Reliance Jio has laid off 500-600 permanent employees and nearly 4,500 contract workers, Economic Times reports, citing anonymous sources. Most firings are said to have happened in consumer-facing verticals, but some employees in the supply chain, HR, finance, and administration have also got the axe. Jio, which has an estimated 15,000-20,000 employees on its payrolls, is said to be rationalizing manpower after its operating margin fell and expenses rose in the March quarter. But the telco says it continues to be a net recruiter and there is no “question of a cost pressure-led action”.
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Jio, whose hashtag mobile subscribers base stood at 306.7 million for its the first time since launch has reduced the number of contracted employees, along with 10% of permanent staff by over 5000 staff. The pink slips handed to most employees are from departments including supply chain, HR, finance, administration, and networks. The development has taken place is also partly because of no growth in operating margins in the last two years. Despite posting a profitable quarter, it witnessed average revenue per user (ARPU) going down to Rs 126.2 from Rs 131.7 in the previous quarter. Aggressive pricing and offering customers data at a cheaper price range has led to impact operating margins. This, in turn, is perhaps not going down too well for its own people and they have removed over 5000 of them. Internal employees come before external hashtag customers and wish that companies on an aggressive mission think of the same hashtag people that contribute to their growth and a better way than simply remove people when it comes to a stage of growth for the company! Hope that these 5000 plus are able to find hashtag jobs soon and spring back into their career.