Reliance fires 11% of its workforce, around 42,000 workers

According to reports, Reliance Industries Ltd. (RIL), recently laid off an astounding 42,000 workers. The company's workforce shrank from 3.90 lakhs in FY23 to 3.47 lacs in FY24, according to RIL's most recent annual report. Closing their physical stores and slowing down their expansion seem to be major contributing factors to this downsizing.

The massive reduction in employee numbers is primarily attributed to a cost-efficiency drive within the company.

Analysts believe that RIL’s workforce reduction is a reflection of the company’s strategic maturity and the growing support from digital initiatives. This statement suggests that while the reduction in workforce may appear concerning, it is part of a larger strategy to streamline operations and enhance efficiency. The analyst added that this doesn’t necessarily mean the headcount won’t increase again when new business opportunities arise, emphasizing RIL’s expertise in driving cost management and efficiency.

Shaadi.com founder Anupam Mittal took to social media to describe the 42,000 job cuts as “alarming” and questioned why this significant development has not garnered more attention in economic and political circles. He mentioned that with an estimated 8-10 million new jobs needed annually, the reduction in workforce at one of India’s largest companies could signal a deeper challenge. Some people on Twitter are also bashing Ambani for cutting jobs whereas they spent over INR 5000 Crores on their son’s wedding.