Recent media reports have claimed that the telecom sector may cut as many as 60,000 jobs by the end of this financial year. A recent study by TeamLease Services claimed that about 65,000 telecom sector workers might lose their jobs by March 31.
The recent findings are resultant of the growing competition in the telecom sector, forcing telecom companies to restructure and go for consolidation. Companies are now going for mergers to survive in the market. Ten years ago, around 12 telecom operators existed in the country, but gradually due to mergers and acquisition, the number has drastically fallen to merely five. These telecom companies include Reliance Jio, Bharti Airtel, Vodafone-Idea Cellular, Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL).
Each merger and acquisition renders thousands of people jobless as companies become large and need fewer people on the payroll to improve their profits. Most of these employees, who might lose their jobs, will be in customer service and finance department.
Recently, Vodafone and Idea Cellular announced their merger. Before that Bharti Airtel acquired the mobile phone business of Tata Tele Services. The Telenor India, Reliance Communications and Aircel have exited the sector. It is estimated that at present telecom sector employs around 25 lakh people and the attrition rate in the industry is around 20 to 25%.