November 25, 2020

Vodafone Thought layoffs: Troubled Vodafone Thought has laid off 1,500 folks, says report



Troubled telecom firm Vodafone Thought has laid off as many as 1,500 folks, ET Telecom has reported.

The brand new improvement is a part of a collection of drastic cost-cutting measures, and carefully follows the telco’s current transfer to scale back the variety of its circles to 10 from 22, with the goal of operational consolidation and value rationalisation.

The telco had informed the Supreme Court docket in June that it didn’t have cash to pay salaries.

On the time of the merger, the overall variety of Vodafone and Thought workers was 20,000. Earlier than the circle rejig, Voda Thought had 11,705 everlasting workers on its rolls. Because the rejig, the telco is believed to have requested wherever between 1,200 and 1,500 of them throughout varied ranges to go away, the report mentioned.

Retrenchments are nonetheless happening to “take away any flab”, and the laid-off workers are being given severance pays, insiders mentioned. As per ET Telecom’s report, for a number of the senior roles, the severance quantity has been round seven months of wage topic to exit clauses of their contracts.

The junior- and mid-level folks which have been laid off are being given severance quantities primarily based on years of labor with the corporate, the report mentioned quoting an individual who was informed to go.

In line with business estimates, the cash-strapped firm owes distributors Rs 3,500 crore to Rs 4,000 crore cumulatively for tools provides. As of now, distributors have been delaying taking new orders from the telco for concern that funds might by no means be made for a similar, the report mentioned.

Vodafone Thought’s distributors embrace Nokia, Ericsson, Huawei, and ZTE, amongst others. The delay in taking orders by them is compounding the corporate’s issues even because it struggles to remain alive amid an more and more hostile enterprise atmosphere.

This has led to the telco’s enlargement plans being stalled, deepening the chance of extra subscriber losses, the report mentioned. The telco, a JV between Aditya Birla Group and Vodafone Group Plc, has misplaced 2 crore subscribers to rivals within the two quarters to March 2020.

It reported a staggering Rs 73,878 crore internet loss in FY 20, the very best ever by any Indian agency. In line with insiders, the corporate might have misplaced 1.5 crore subscribers extra for the quarter ended June 30.