Massive layoff in Reliance JIO upto 5000 employee Job Cut

Reliance jio downsizes asks 4500 contractual-staff to leave

People familiar with the matter said the company has let go of some 5,000 people, of which 500-600 are permanent employees and the rest are contracted. But this couldn’t be independently verified.

 “Managers have been told to reduce team sizes. The areas that are getting impacted are administration, supply chain, finance and HR,” said another person on condition of anonymity. 

Sources said Jio has 15,000-20,000 employees on its payrolls. However, there is a much larger number that works for the operator but are third-party employees. Third-party employees can be employed by a staffing firm which in turn gets payments from the company hiring them, in this case Jio. 

The company didn’t comment on specific numbers. 

For the January-March quarter, Jio’s earnings before interest, tax, depreciation and amortization (Ebitda) margin fell 5 basis points on quarter to 39%, with total expenses rising almost 8% on quarter, mainly on the back of higher network operating costs, finance expenses, and depreciation and amortization charges. 

Employee costs typically range 5-6% among telecom operators and companies working to control costs tend to drop the axe first on the workforce, said analysts. 

The operator’s average revenue per user (ARPU), a key performance parameter, dropped for the fifth straight quarter to Rs 126.2 from Rs 130 in the previous quarter. After the demerger of its tower and fibre operations into two units, Jio’s net debt stood at Rs 67,000 crore as on March 31, 2019.