RCOM Plans To Reduce 37% Workforce By Month End

In a major restructuring move, Anil Ambani-led Reliance Communications (RCOM) plans to reduce 37% of its 15,000-strong workforce by the end of July by outsourcing its call centre and shared services operations. The move aims at exiting non-core businesses and cutting costs to increase profitability.

RCOM is likely to enter into deals worth a total of Rs 700 crore with two third-party service providers to outsource its BPO and shared services operations. This will result in about 6,000 employees losing their jobs at RCOM.

About 4,500 of them are currently working in RCOM's call centre operations while the rest make up its shared services teams. After the outsourcing these employees will migrate to the rolls of the third-party service providers.

High costs, mostly related to debt taken to acquire bandwidth and fund expansion, have been weighing on profit for several years.