Aircel laying off 700 employees, to cut more jobs in April: Report

GSM telecom operator Aircel is reportedly laying off around 700 staff, which is almost 10% of its pan-India staff strength, as part of the first stage of workforce downsizing ahead of its planned merger with Anil Ambani-led Reliance Communication. The telco plans for the next phase of job cuts in April this year.


Aircel is currently in the process of merging its operations with RCom’s wireless business to create a new wireless entity. The merger between Reliance Communication and Aircel is in the courts awaiting clearance from the Supreme Court.

According to a Times of India report, Aircel has given these employees a week’s time since last Friday to agree on the company’s compensation package, which includes full month’s salary in February and just the basic pay of the following six months.

“The entire exercise is being aimed at reducing duplication of human resources with the possible merger with Reliance Communications (RCom),” a source was quoted as saying by the publication.

The Times of India reported that the circle teams, as well as the corporate base, is being resized now with an eye on cost restructuring.

“In the coming 7-8 months, we are planning to go slow on all segments as more stages of job cuts are on the cards,” an insider at Aircel told the publication.

Aircel, which has around 8,000 employees in India, however, contended that the ToI report of the firm laying off employees was ‘speculative’ and ‘misleading’.

In a statement issued to media, Aircel said that the recent news report regarding rationalisation of jobs at Aircel is speculative and deceptive.

“We would like to emphasise that amidst all that is happening in the sector, our focus is to build a profitable company, keeping the best interest of our customers and people, ” said the company in a statement.

The ongoing consolidation drive will lead to massive layoffs in the Indian telecom industry with as many as a thirds of over three lakh employees becoming redundant in the next 18 months as consolidation plays out, according to a recent ET report.

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41 Comments on "Aircel laying off 700 employees, to cut more jobs in April: Report"


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Sunny | Lucknow
February 19, 2017 12:56 pm 12:56 PM

Aircel, a company born out of corruption, sooner or later its bad days would arrive. These people should be happy they atleast had these jobs which shouldn’t have been there in the first place. Not surprising that Aircel does so well in TN, after all it’s one of the most corrupt states of India.

February 19, 2017 2:32 pm 2:32 PM

Please, let’s not compare TN with UP. UP will fail on nearly any metric. Aircel has traction in Mumbai too. Entire sector is about to witness layoffs not just aircel.

February 19, 2017 12:57 am 12:57 AM

Wait, 7-8 months of “going slow”? Rcom announced that it will close the deal by Q3 this year. Are they really thinking of two brands, one company? Something is off.

February 19, 2017 3:02 pm 3:02 PM

If Airtel goes with same attitude then same will happen with them… I see them for atleast two years from here onwards….. I don’t see them in long term in this sector

February 19, 2017 2:59 pm 2:59 PM

Waiting for merger badly…. Wish to see them giving competition to Avoid group…… I think Vodafone and Idea are dead now

February 18, 2017 12:10 pm 12:10 PM
Just read the comments down there and I am amazed. People supporting AVoId really have no logics and they are not at all pro-consumers. They can’t even see themselves that they were part of loot that AVoId did by using their monopoly and dominance. But they are here to be looted and feel proud of it. You mindless people, If Jio is responsible for all this then AVoId is responsible for bad state of RCOM, Tata, Aircel, Videocon, Telenor, MTS etc. which got killed even before Jio arrived and don’t forget AVoId used their dominanace to kill own very own… Read more »
February 18, 2017 7:05 pm 7:05 PM

You are one of the persons who dont know how businesses in the worls run. Telecos are investing huge amount of money in the business. So their risk for returns is also more. Thats why only 3 telecos in india are profitable even though 8 to 9 operators are in the business.

February 19, 2017 1:03 pm 1:03 PM

Where were you when Avoid did 2G scam? We lost so much public money from those scams. Oh, you got your salary from that scam.

February 19, 2017 12:58 pm 12:58 PM

Then Jio investing more & giving services at affordable price, so will get more customers. Airtel is going to lose. So why cry. Business will lose, if they can’t compete. Avoid agents are hypocrite cry babies. They don’t care about others. Agents only care about their jobs. Their should be investgation against avoid agents commenting here. Once confirmed that they are agents, then they should go to jail for misbehaving customers using words like beggar, freeloader, etc.

These agents are not well taught by their parents. Only badly raised spoiled brats will talk like this.

February 19, 2017 12:58 am 12:58 AM

I didn’t know rcom was in loss….before this quarter anyway.