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40,000 Job Cuts in Telecom since 2017, May Lose Another 50,000

The telecom industry seems to have lost its shine as it faces uncertainties in the job market. About 80,000–90,000 heads would likely have rolled in totality in the following six-nine months. The CIEL HR Services stated in a report that the industry is facing turbulent times in view of reduced margins and increasing competition, which has led to a large number of layoffs.

40,000 Job Cuts in Telecom since 2017, May Lose Another 50,000

The survey included 65 telco, hardware and software service providers to telecom industry and about 100 senior and middle level employees from each. The report declared that about 40,000 people from the industry have been laid off since the previous year and this figure is likely to touch 80,000-90,000 in the following six-nine months. This fact was echoed by Aditya Narayan Mishra, the Chief Executive of a Bengaluru based company. About 25% lose or leave their job with no job on hand but 69% are confident of finding one elsewhere. This implies that skilled employees incur no difficulty in obtaining employment in other sectors and the telecom sector will need to take extra efforts if it wants to retain their top talent.

The report revealed some of the reasons attributed for the layoffs, which included increased loan servicing costs, cutthroat competition and merger doubts leading to lower investment in manpower resource. Salary hikes were few in the telecom sector with about 69% getting a 7% yearly increase and one-third obtaining less than 5% increase. Recruitment has become ‘critical need’ based. Mr Mishra added that with the telecom industry bereft of its luster, the vacancies are being left empty.

Mr Mishra was of the opinion that the telecom industry would mostly fill its vacancies through campus recruitments barring a few crucial positions. A 25% contrary movement would be mostly seen involving those who are unemployed or have entered the field of consulting.

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