New Delhi, Apr 16: The merging of largest telecom companies Vodafone India and Idea Cellular is yet to make drastic changes in 5000 people's lives.
The ongoing merger process of Vodafone India and Idea Cellular could see about a fourth of the telcos' combined 21,000-strong workforce lose jobs in the next few months as the companies look to save on costs, eliminate duplication and improve efficiency, people familiar with the matter said.
Both companies - which are making losses amid huge revenue pressure and acombined debt of some Rs 1,20,000 crore have been advised by the nodal team handling the merger to shed at least 5,000 employees in the next couple of months.
"The retrenchment has to happen swiftly because in times of margin pressures in a debt-heavy industry, both companies do not want to start new operations burdened with excess manpower," said a senior executive aware of the development.
The merger, which has received all clearances except from the telecom department, is expected to close sometime in May.
Sources have told media that those who fall into the bottom quartile in the performance assessment during this appraisal season will be asked to go and profiles that have a mirror image in the two firms, including divisions such as supply chain and procurement, will also face the axe as the telcos want to create a cost-efficient merged firm without any flab.