Debt-Ridden Reliance Communication Reduces Job By Around 94 Per Cent

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New Delhi:Reliance Communications said that the total number of jobs at the company have been reduced by about 94% to 3,400 at present from its peak level of 52,000. The Reliance Communication is forced to do all this as it is in debt trap.

“Total number of people in the RCom group: from its peak of approximately 52,000 to current 3,400, a reduction of approximately 94%,” RCom said on Wednesday in a BSE filing.

The company is estimated to be at peak in around 2008-10. RCom, which is reeling under debt of around Rs 45,000 crore, closed its mobile services business in January this year and continues to provide business-to-business (B2B) telecom services.The company in the filing said that its B2B unit is insulated from ongoing tariff war in the industry.

“The tariff wars between incumbents Airtel, Idea, Vodafone and the new entrant Reliance Jio continue unabated, further dragging down all key financial metrics of the wireless sector. However, post its wireless B2C business exit on Jan-18, RCOM is no longer affected by the severe and prolonged wireless sector hyper competition,” the filing said.

RCom said that it is evident from the latest sector revenue report released by the Telecom Regulatory Authority of India, the wireless sector continues to be on a downward spiral, with over 21 per cent revenue decline on year-on-year basis.

Overall revenue market size shrunk by over Rs 26,000 crore on annualised basis, it added.“RCom operational business fully insulated from the hyper competition, mega capex requirements, financial stress of the wireless sector,” the filing said.

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