Tata Teleservices fires up to 600 employees amid competition
Tata Teleservices has fired between 500 and 600 employees in sales and other related functions, according to reports. The layoffs are across locations and severance package being offered to employees is one month's salary for every year of service, reports added. The layoffs come amid the telecom industry witnessing intense competition triggered by the entry of Reliance Jio.
New Delhi, May 2 (PTI) Tata Teleservices has fired between 500 and 600 employees to tide over difficult times in the hyper-competitive telecom market. As many as 500-600 employees have been impacted by the lay offs in sales and other related functions, two people familiar with the matter said. The lay-offs are across locations, they said, adding that the severance package being offered to the employees impacted by the decision is one months salary for every year of service. An e-mail sent to Tata Teleservices did not elicit a response. Sources in the company said that these are challenging times for the telecom industry. "What most of the operators including Tata Telservices are doing is workforce rationalisation, to stay competitive in line with the needs of the market," they added. The lay-offs comes at a time when the telecom industry has been witnessing an intense tariff war triggered by the entry of Reliance Jio, whose disruptive positioning in the market has left most of the telcos bleeding. The telecom operators are facing tremendous pressure on revenue and profitability even as the industrys debt has soared to nearly Rs 4.6 lakh crore. 