State-owned telecom operator Bharat Sanchar Nigam (BSNL) is looking to
cut its headcount by 80,000 employees by offering an attractive
Voluntary Retirement Scheme (VRS).
The debt-ridden telecom company which is looking to reduce its operational costs, is awaiting government response to its scheme. Once approved, the operator will cut the headcount to half of its existing workforce in India, Pravin Kumar Purwar, Chairman of BSNL told ET.
With this, the telco is looking to outsource employees on a contractual basis to run operations. However, even after retiring the said number, it will have as many as 100,000 employees on payroll.
The move will boost revenue of the company as employees cost three fourths of its total revenue.
According to the Employee Union, “BSNL revenues dipped from ₹32,000 crore to ₹ 18,000 crore. The government has not taken any meaningful action to curb the predatory pricing.”
“The number of persons in the organisation are far higher than the competitors. One of the proposals under discussion is the VRS. We are looking forward to reduce 70,000 to 80,000 employees, and make it attractive for the employees, so that they can see value in the VRS," Purwar noted.
It is also tightening costs by reducing its energy consumption by 15%.
It is not just BSNL but all telcos are suffering from reduced income from data services, thanks to Jio’s prices. BSNL is looking to loop in 4G services to keep up with the financial costs.
Meanwhile, the telco is also looking to address the payment dues as it is yet to pay its August salaries, The News Minute reported. This is the third time that the company has delayed salaries.
In fact, over 6,500 BSNL’s employees in Telangana protested due to the delay in salaries.
The debt-ridden telecom company which is looking to reduce its operational costs, is awaiting government response to its scheme. Once approved, the operator will cut the headcount to half of its existing workforce in India, Pravin Kumar Purwar, Chairman of BSNL told ET.
With this, the telco is looking to outsource employees on a contractual basis to run operations. However, even after retiring the said number, it will have as many as 100,000 employees on payroll.
The move will boost revenue of the company as employees cost three fourths of its total revenue.
According to the Employee Union, “BSNL revenues dipped from ₹32,000 crore to ₹ 18,000 crore. The government has not taken any meaningful action to curb the predatory pricing.”
“The number of persons in the organisation are far higher than the competitors. One of the proposals under discussion is the VRS. We are looking forward to reduce 70,000 to 80,000 employees, and make it attractive for the employees, so that they can see value in the VRS," Purwar noted.
It is also tightening costs by reducing its energy consumption by 15%.
It is not just BSNL but all telcos are suffering from reduced income from data services, thanks to Jio’s prices. BSNL is looking to loop in 4G services to keep up with the financial costs.
Meanwhile, the telco is also looking to address the payment dues as it is yet to pay its August salaries, The News Minute reported. This is the third time that the company has delayed salaries.
In fact, over 6,500 BSNL’s employees in Telangana protested due to the delay in salaries.
