Reliance, India’s largest conglomerate, made significant changes to its workforce in the financial year ended March 2024. The company reduced its workforce by 11%, resulting in over 42,000 people losing their jobs. Additionally, Reliance slowed down its hiring process, bringing on board approximately 171,000 individuals, which is significantly lower than the 263,000 new hires in the previous year.
The conglomerate explained that over 143,000 employees opted for “voluntary separations,” indicating that many workers chose to leave the company voluntarily. Reliance employs a large workforce across various industries, including India’s largest retail chain and the country’s top telecom network. Reliance Retail, the company’s retail division, had the highest number of personnel, with about 207,000 employees at the end of the financial year. However, this figure was lower than the previous year’s headcount of approximately 246,000.
Reliance acknowledged that the retail industry often experiences a high turnover rate, particularly in store operations. This turnover could contribute to the reduction in headcount. The layoffs in Reliance Retail coincide with the company’s revenue growth slowing down. In the first quarter, Reliance Retail reported a modest 7% increase in revenue compared to the same period the previous year. This growth fell significantly short of the 15%-20% increase predicted by analysts.
Furthermore, Reliance Retail’s expansion plans have been affected. The company only opened 82 new stores in the quarter, a sharp decline from the average of 740 stores per quarter in the previous fiscal year. These factors suggest that Reliance Retail is facing challenges in maintaining its growth trajectory.
Reliance is not the only company in India experiencing workforce reductions. The country’s top three IT services companies, TCS, Wipro, and Infosys, collectively cut over 63,750 jobs in the last financial year. This trend reflects similar global developments in the IT industry.
These workforce changes in Reliance and the IT services sector highlight the need for companies to adapt to evolving market conditions. As businesses face economic challenges and technological advancements, they may need to restructure their workforce to remain competitive. The decisions made by Reliance and other companies in India demonstrate the importance of strategic workforce planning and the willingness to make tough choices when necessary.
