If the salt-to-software conglomerate decides to pull out of the telecom business, thousands of employees will be handed pink slip. Fate of around 5,000 employees hangs in the balance as Tata Teleservices, the telecom arm of Tata Group, is planning to cease operations after mounting losses.
As per a report, Tata Teleservices is readying exit plans for its staff members who were recruited early this year. The telecom arm of the group employs a staff of 5, 101 as per its latest annual report. The Economic Times reports that the employees are to be offered notice periods of six to three months, and severance packages for those who wish to leave earlier.
The report stated that a voluntary retirement scheme will rolled out in a few months for senior members of staff above a certain age limit. Only a small percentage of employees will be absorbed in other companies of the Tata Group.
“Only those staffers who have a specific qualification which can be put to use in other group companies will be taken up for absorption. It is unfair to saddle other Tata companies with employees of TTSL," a senior official said on the condition of anonymity. The official was quoted by the ET.
It’s learnt that representatives from Tata Teleservices have met officials of Department of Telecommunication, to apprise them of decision to close down the company and to discuss sale or surrender of the spectrum allocated to or purchased by them. The process in this direction could reportedly begin by next month.
Tata Group is arguably India’s most famous family conglomerate. The group is now worth more than $100 billion and operates in more than 100 countries globally.