💼 Reliance Cuts Over 42,000 Jobs
Reliance, India's biggest conglomerate, reduced its workforce by 11% last financial year, cutting over 42,000 jobs. This reduction came as the firm slowed hiring, adding 171,000 employees, compared to 263,000 the previous year. The company attributed the bulk of these cuts to “voluntary separations,” with more than 143,000 employees opting to leave.
🏬 Reliance Retail Hit Hard
Reliance Retail, the company’s retail division, was significantly impacted. The division employed 207,000 people by the end of March 2024, down from 246,000 a year earlier. Reliance noted that the retail industry typically experiences high employee turnover, particularly in store operations. The company acknowledged a marked slowdown in revenue growth, with only a 7% increase in Q1, far below the anticipated 15% to 20% increase.
📉 Reduced Store Expansion
Reliance Retail’s expansion also slowed considerably. The company opened just 82 new stores in the first quarter, a steep decline from an average of 740 stores per quarter in the previous fiscal year. This slowdown comes despite a $1.85 billion investment in Reliance Retail, which valued the business at $100 billion in 2023.
🌐 Industry-Wide Impact
Reliance is not alone in job cuts. India’s top IT services firms—TCS, Wipro, and Infosys—also slashed more than 63,750 jobs in the last financial year, reflecting a broader global trend. This downsizing trend across industries suggests a shift in hiring strategies amid economic uncertainties and changing market dynamics.
How will job cuts at Reliance affect India’s economy?
