Reliance Industries Ltd is implementing a cost-efficiency drive across its subsidiaries, Reliance Retail and Reliance Jio Infocomm, according to a media report. The initiative includes a reduction in new recruitments, a review of compensation benchmarks, and the termination of underperforming employees.
In the retail business, the aim is to eliminate role duplication resulting from recent acquisitions. In the telecom division, most of the 5G network rollout has been completed. These details were shared by multiple executives within the company and the industry, who preferred to remain anonymous.
An executive from the company revealed that both divisions had engaged in extensive hiring over the past year, often at higher-than-usual market rates. However, top management has now instructed them to scale down these recruitment efforts. Simultaneously, underperforming employees may face potential retrenchment.
Reliance Retail has approximately 418,000 employees, while Reliance Jio has over 80,000 employees.
As per a senior consultant mentioned in the report, both companies have decelerated their hiring activities and will only recruit on a “need basis.”
Reliance Retail Ventures, a subsidiary of Reliance Industries, acquired Metro AG’s India business, including 31 wholesale stores, for a total of Rs 2,850 crore last year. It also took over the lease of various Big Bazaar outlets from Future Retail, which was burdened with debt.
These acquisitions significantly expanded Reliance’s retail presence. As of March 31, 2023, the company operated 18,040 stores, including Jio mobility and communication stores.
Reliance Industries reported a year-on-year net profit increase of 19.10%, amounting to Rs 19,299 crore for the March quarter. This compares to a profit of Rs 16,203 crore in the corresponding quarter of the previous year.
The conglomerate also disclosed that its revenue from operations for the quarter rose 2.12% year-on-year to Rs 2,16,376 crore, as opposed to Rs 2,11,887 crore in the same quarter last year.
About The Author
