Aircel denies reports on job cuts plan, calls it speculative

According to a Times of India report, telecom major, Aircel reportedly is going to give pink slips to its 700 employees or around 10 percent of its pan-India staff strength, in the face of a ongoing consolidation wave in the Indian telecom scenario.

"The entire exercise is being aimed at reducing duplication of human resources with the possible merger with Reliance Communications (RCom). The circle teams, as well as the corporate base, are being resized now with an eye on cost restructuring," a source told ToI.

Many fear that this might only the beginning, and many similar announcements are awaiting employees in the telecom sector.

According to the report, the decision came only after a thorough look at the telco’s circle strength. This would also likely to be the first lot of people at Aircel who has been given around a week's time to agree with the company's compensation package.

More job cuts are on the cards in the coming 7-8 months, said the report quoting the source. The next stage of job cuts, according to sources, would be done in April.

However, denying any such move, Aircel has issued an official statement today, which says:

“The recent news report regarding rationalization of jobs at Aircel is speculative and misleading. We would like to emphasize that amidst all that is happening in the sector, our focus is to build a profitable company, keeping the best interest of our customers and people."

(The story is updated to incorporate Aircel's statement)