In a sweeping action, Mukesh Ambani's Reliance Industries laid off 42,000 employees in the financial year 2023-24, nearly 11 per cent of the company's total workforce. The decision sent shockwaves through the industry and questions have been raised on the future of Reliance's expansive empire.
Reliance Industries, which employed 3,89,000 people at the close of the 2023 financial year, has trimmed it down to 3,47,000. The decision has mostly impacted the retail sector, which saw a notable contraction. The retail division which once employed 2,45,000 people, has cut its workforce down drastically to 2,07,000 individuals. This comes at a time when Reliance has witnessed a slowdown in store openings and a decline in expansion efforts.
This has been coupled with a marked reduction in hiring. According to Reliance's latest annual report, there has been a steep drop in new recruitments, reduced by over one-third from the previous year to just 1,70,000. This strategic reduction in workforce is part of a broader initiative by Reliance to improve cost efficiency and profitability across its operations.
Industry analysts note that Reliance’s recent moves indicate a maturing phase in its business operations, especially within its newer ventures. The company’s substantial investments in digital technologies and streamlined management processes have now peaked, allowing for more efficient operations. However, this shift does not suggest a complete halt in future hiring, but rather a strategic realignment focused on better cost management.
The retail sector has been the most significantly impacted by this downsizing, as Reliance's previous aggressive expansion plans have been scaled back, leading to notable job losses. Additionally, the telecom sector, particularly within Jio, has also experienced staff reductions, though to a lesser extent. Jio's workforce has been reduced from 95,000 employees last year to 90,000.
