Bharti Airtel has embarked on a restructuring exercise that will merge three separate businesses, triggering a large-scale job cull for the first time in the services sector since the 2008 economic slowdown. Under this exercise, Bharti Airtel plans to merge its mobile, satellite TV (DTH), and fixed-line & broadband telemedia business, which jointly account for about 90% of the company’s revenues and the vast majority of its workforce, into a single entity.
The merger ostensibly aimed at cutting costs and boosting efficiency at the country’s biggest telecom operator at a time of falling profits, is expected to lead to big job losses, with estimates putting the number at more than 2,000. Bharti’s move could provide the trigger for similar action at rivals, many of whom are battling identical issues—debt burden, slowing growth and high marketing spends amid cut-price tariffs.
Company Name | CMP |
---|---|
Bharti Airtel | 1343.90 |
Vodafone Idea | 13.57 |
Indus Towers | 339.10 |
Tata Communications | 1816.10 |
Bharti Hexacom Ltd. | 940.45 |
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