Reliance Industries Layoffs: Anupam Mittal Finds RIL’s Decision to Cut 42,000 Jobs ‘Alarming’
- ByStartupStory | August 12, 2024
Reliance Industries Ltd. (RIL) has laid off 42,000 employees, accounting for 11% of its total workforce, during the fiscal year 2023–24, as reported by The Economic Times. The reduction, which has primarily affected the retail division, has sparked concern among industry leaders, including Shaadi.com founder Anupam Mittal, who described the move as “alarming.”
Mukesh Ambani’s conglomerate, which has seen its workforce shrink from 3.89 lakh in 2022–23 to 3.47 lakh in 2023–24, is reportedly seeking to improve cost efficiency. The company’s annual report also highlighted a significant slowdown in new hiring, with the number of new employees added during the year reduced by over one-third, or 1.7 lakh.
An analyst from a leading broking firm, who wished to remain anonymous, noted, “The new lines of businesses (at Reliance) have matured now and have significant support from digital initiatives. Now they are at a stage to better manage the operations with optimum strength. It doesn’t mean that the numbers (of headcount) won’t increase when new business opportunities emerge and strategy changes. They understand very well how to drive cost management and efficiency.”
Anupam Mittal, a prominent voice in the Indian startup ecosystem, expressed his concerns on social media. “42k? Why is this ‘quiet news’? Should be raising serious alarm bells across the economic & political circles,” he wrote.
One social media user responded, “It was mostly from Retail, mostly part-time or contract employees depending on need. They added 1.7 lakh in other areas. Maybe they are bringing in changes. Why does it need political attention though? It’s their business decision.”
Mittal replied, clarifying his stance, “What I mean is that if our largest cos are cutting down people, the job situation gets much worse. We already need 8-10 m net new jobs a year. Not suggesting they need to take it up with Reliance but rather that we need a bold plan that works.”
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