Reliance Reduces Workforce by 42,000: Major Cuts in Retail Sector and Store Expansion Slowdown The telecom division, Reliance Jio, also faced workforce reductions, with employee numbers falling from 95,326 in FY23 to 90,067 in FY24.
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Reliance Industries Ltd (RIL), India's largest conglomerate, has made headlines with a significant workforce reduction, letting go of 42,000 employees in the fiscal year 2023–24.
According to The Economic Times reports, this marks an 11% decrease in its total workforce, which fell from 3.89 lakh in FY 2022–23 to 3.47 lakh in FY 2023–24. The cuts are particularly notable in RIL's retail division, which saw a reduction from 2.45 lakh to 2.07 lakh employees.
This strategic move seems to be a part of RIL's effort to enhance cost efficiency.
New hires also saw a substantial drop, declining by over a third to 1.71 lakh in FY24, according to media reports.
The reduction in workforce has been coupled with a slowdown in store expansions. Despite Reliance Retail adding over 3,300 new stores in FY23, only about 800 new stores were opened in FY24, bringing the total number to 18,836. This slowdown aligns with the workforce cuts and the scaling back of store openings.
The telecom division, Reliance Jio, also faced workforce reductions, with employee numbers falling from 95,326 in FY23 to 90,067 in FY24. Interestingly, despite these cuts, RIL's overall employee benefits expense increased by 3% year-on-year to INR 25,699 crore, suggesting that while the workforce has shrunk, the cost per employee might have risen or other benefit costs have increased.
The workforce reduction, particularly in the retail sector, raises concerns about broader economic impacts. RIL's retail segment, which employs around 60% of its total workforce, is crucial in the consumer-driven economy. The cutbacks may signal potential shifts in consumer behavior or market conditions, forcing RIL to reevaluate its operations.
For India, which faces ongoing challenges in job creation, such large-scale reductions by a major company could have ripple effects throughout the economy. The move highlights RIL's focus on streamlining operations, but it also prompts questions about the health of the retail sector and the overall economic landscape.
