Reliance job cut: Anupam Mittal finds RIL laying off 42,000 ‘alarming’, ‘If largest companies are cutting down people…’

Reliance Industries Ltd. (RIL) has reduced its workforce by 42,000 jobs, or 11% of its entire workforce, in the 2023–24 fiscal year compared to the previous year, as per a report by The Economic Times. Shaadi.com founder Anupam Mittal has found it “alarming” and wondered why there was no noise around it.

Mukesh Ambani’s company reportedly wants to improve cost efficiency, which will significantly impact the retail division. RIL’s total employee count dropped to 3.47 lakh in 2023–24 from 3.89 lakh in 2022–2023. The company’s annual report also highlighted that new hiring was down by 1.7 lakh, a reduction of over one-third.

“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,” ET quoted an analyst with a leading broking firm. The analyst did not wish to be named.

Mittal took to social media and wrote, “42k? Why is this ‘quiet news’? Should be raising serious alarm bells across the economic & political circles.”

Anupam Mittal says, ‘job situation gets much worse’

One of the users pointed out, “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, “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.”