In a significant move that’s making waves across industries, Mukesh Ambani’s Reliance Industries has announced the layoff of approximately 42,000 employees, amounting to an 11% reduction in its workforce for the financial year 2023-24.
The downsizing, which has caught many by surprise, marks one of the most substantial workforce reductions in the company’s recent history.
The numbers, now clear in the aftermath, reveal the extent of the cuts. Reliance Industries, which had a robust workforce of 3,89,000 employees at the end of the financial year 2023, has reduced its staff count to 3,47,000.
The most significant contraction has occurred in the retail sector—a once-booming division that employed 2,45,000 people, now scaled back to 2,07,000.
This sector’s downturn is also evident in the sharp slowdown in store openings and a noticeable pullback in expansion efforts.
Moreover, the company’s latest annual report highlights a pronounced drop in new recruitments.
Reliance onboarded only 1,70,000 new employees this past year, down by more than a third compared to the previous year.
This move aligns with the company’s broader strategy to enhance cost-efficiency and boost profitability by optimizing its operations.
Industry experts believe this wave of layoffs indicates a strategic pivot as Reliance Industries matures and stabilizes its newer ventures.
The company’s investments in digital technologies and management processes have reached a level where they can operate more efficiently, reducing the need for a larger workforce.
However, this doesn’t necessarily signal the end of future hiring; rather, it suggests a more calculated approach to managing costs.
The retail sector has felt the brunt of this downsizing, with Reliance’s ambitious expansion plans now in retreat, resulting in significant job losses. Additionally, the telecom arm, Jio, also saw a reduction in its workforce, albeit to a lesser degree—from 95,000 employees last year to 90,000 this year.
As Reliance Industries navigates this challenging period, the full impact of these layoffs on its operations and employees will likely become clearer in the months ahead.
Stay informed and updated with the latest news. Follow CnbDaily on WhatsApp to get your daily dose of news and explainers.
