7 July-2014, DNA: It is definitely not Acche din for around 6000 workers at the Anil Ambani owned Reliance Communications who are going to be laid off by the end of July. The company will outsource its call centre and shared services to reduce costs, reports Economic Times. It will sign deals worth Rs 700 crore with two third party providers to manage the services. Almost 4500 of its call centre employees and 1500 of its shared servcies will exit RComm’s pay rolls. However, they might yet keep their job by rolling over to the third party provdiers, reports ET.
Reliance Communications to lay off 6000 workers this month to boost profits
The outsourcing will lead to a saving of Rs 200 crore in the annual salary bill alone. The company is not ready to carry on with the two departments that they think added no value to the company’s profits. As on March 31, 2014, the total debt of the company stood at Rs 40,000 crore.
the company recently raised Rs 6100 crore through qualified institutional investment (QIP). It has also made its plans known to reduce its debts by Rs 20,000 crore by the end of financial year 2016. It will do so by selling some of its prime real estate properties and other assets.
Hindustan Times quoted a source saying, “Amongst the initiatives laid out are monetising RCom’s asset includes, stake sale in the company’s international undersea cable arm Global Cloud Exchange and hiving off of its non-core DTH business, Big TV.” It could also sell its stake in Reliance Infratel, its tower business.
R Comm is up 1.4 percent at Rs 145 today. The stock also gained after FTSE increased the weightage of the stock in its index, that will be effective from July 14.
The Anil AMbani led Reliance group also crossed Rs 1 lakh crore market capitalisation (the money you would need to buy all the stocks of the companies at the present market value) after all its stocks made hefty gains in past one year.