Job Losses In Telecom Sector Might Touch 90,000 Mark
Telecom sector has witnessed job cuts of around 40,000 employees since 2017 beginning, said a report.
Faced with uncertainty, the telecom sector will continue to witness a decline in headcount for the next six to nine months, taking the total number of job losses to 80,000-90,000, said a report.
The sector, which has been witnessing tough times in terms of profitability due to rising competition and lower margins, has witnessed large scale layoffs making job scenario uncertain, said a CIEL HR Services report.
The report is based on a survey of nearly 100 senior and mid-level employees of 65 telecommunications, software and hardware service providers to the telecom companies.
According to the report, in the last one year, the sector has already lost around 40,000 people and the trend is likely to continue for the next six to nine months and may see the culling touching 80,000-90,000.
The attrition rate is like to remain high at least for the next two-three quarters and the sector is likely to lay off around 80,000-90,000 people.Aditya Narayan Mishra, Chief Executive Officer, CIEL HR Services
He said that the employees worried about their job certainty with their present employer and increased levels of anxieties are contributing to the speculation.
High cost of loan servicing, aggressive competition for market share, uncertainty of mergers among others have been hindering further investment by telecom companies resulting in layoffs, the report said.
The report added that salary hikes have been muted compared to other sectors and about 69 percent employees got an annual salary hike of 7 percent, while almost one-third of them received less than 5 percent hike.