Reliance Industries' Layoffs Raise Concerns: Anupam Mittal Questions Silence on Job Cuts
Image: Reliance Industries Limited
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Reliance Industries Ltd., one of India's largest conglomerates, has recently made headlines for cutting 42,000 jobs during the 2023–24 fiscal year.
The reduction in workforce has sparked concerns, particularly from Anupam Mittal, the founder of Shaadi.com, who took to social media to question the lack of attention this issue is receiving in the media.
This blog delves into the details of the layoffs, the implications for Reliance's operations, and the broader impact on the economy.
Significant Layoffs at Reliance Industries
Reliance Industries Ltd. has reduced its workforce by 11% during the 2023–24 fiscal year, a move that has caught the attention of industry observers and raised questions about the reasons behind it.
According to a report in the Economic Times, The job cuts, amounting to 42,000 positions, have particularly impacted Reliance's retail division, which saw a significant decrease in its number of employees despite the company continuing to expand its retail footprint.
Anupam Mittal’s Concerns: Why the Silence?
Anupam Mittal, the founder of Shaadi.com, voiced his concerns about the layoffs on social media, questioning why this news hasn't sparked more widespread alarm.
Image: Anupam Mittal
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He expressed his surprise at the quietness surrounding such a significant event, writing on X,
"42k? Why is this 'quiet news'? Should be raising serious alarm bells across the economic & political circles."
Mittal's comments highlight the potential implications of such large-scale job cuts, not only for Reliance but also for the broader economy.
The Numbers Behind the Layoffs
According to a report in the Economic Times, Reliance Industries cut 42,000 jobs during the 2023–24 fiscal year, bringing its total number of employees down to 347,000 from 389,000 the previous year.
This reduction is part of a broader cost-efficiency drive, particularly within the retail division, where the workforce shrank from 245,000 to 207,000.
Despite this, Reliance Retail continued to grow, adding 3,300 new stores, bringing the total number of outlets to 18,040 by the end of the fiscal year.
Reasons Behind the Job Cuts
The decision to reduce the workforce appears to be driven by a need for greater cost management and operational efficiency as Reliance's new business lines mature.
An analyst from a leading brokerage, who wished to remain anonymous, explained,
"The new lines of businesses (at Reliance) have matured now and have significant support from digital initiatives. Now they are a stage to better manage the operations with optimum strength. It doesn't mean that the numbers (of headcount) won't increase when new business opportunities emerge and strategy changes."
This suggests that while the current focus is on streamlining operations, future growth could see an increase in headcount again.
Impact on Jio and Retail Divisions
Image: Reliance Industries Limited
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Reliance's retail division was particularly affected, with a reduction in staff from 245,000 to 207,000 employees, even as the company expanded its retail presence.
Jio, Reliance's telecommunications arm, also saw a decrease in employees, from 95,000 to 90,000 over the same period.
These reductions, however, do not necessarily indicate a downturn in business but rather a strategic shift towards more efficient operations.
A Quiet Shift with Broad Implications