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Reliance fired thousands of employees in Gujarat
Reliance layoffs
Dilip Patel
Ahmedabad, August 11, 2024
Mukesh Ambani said in the 46th Annual General Meeting-AGM 2023 of Reliance Industries Limited that Reliance Industries has created 2.6 lakh new jobs in FY 2023. Also there were 3.9 lakh employees. By the end of 2023, Reliance had reached 4 lakh employees. However, in the case of Reliance, there was uncertainty in the global job market due to the economic slowdown in China, America and Europe. Due to which people lost jobs in many countries. Now it is India’s turn.
If the biggest companies are cutting employees, then the job situation will get worse. Every year 80 lakh to 1 crore new jobs are being lost.
Reliance Industries has laid off 42 thousand employees. Which is about 11 percent of the workforce. However, neither the central nor the Gujarat government has done anything for this. The retail and oil business has been hit hard. Its major business is in Gujarat. So Gujarat has been affected the most in this layoff. His organization has already received information that 5 thousand employees have been fired from Gujarat. Reliance is the largest company in the country.
The number of employees in Reliance Industries was 3,89,000 in 2022-23. It will come down to 3,47,000 in the financial year 2023-24.
This is detailed in the annual report released recently by Reliance Industries. The company has reduced new appointments by more than a third during the financial year 2023-24. Now there are only 1,70,000 employees.
Anupam Mittal, founder of Saadi.com, was the first to give the news of Reliance layoffs. He questioned the news media why they are silent on this?
Layoffs in retail
The number of employees in the retail sector was 2,45,000 during FY 2022-23. In FY 2023-24, it was reduced to 2,07,000 employees. Apart from this, Reliance Jio has reduced its employee count from 95,000 to 90,000 during FY 2022-23. Then the sword hung over 10 thousand employees.
Reliance had bought the business of Metro Case and Carry Company for Rs 2850 crore. Which has 30 lakh customers. Since then the country was moving towards monopoly with cutthroat competition. Therefore the entire sales division and retail business was in crisis.
Employees were asked to resign. JioMart has asked 1,000 people to resign in the last few days, including 500 officers of its corporate office. Employees were laid off under the Performance Improvement Plan.
The company has taken this step to reduce costs.
JioMart has also decided to cut the fixed salary of many employees to reduce its costs. These employees have now been placed on variable pay structure. Along with this, the company has decided to close more than half of its fulfillment centers to reduce losses. Notably, the company has more than 150 fulfillment centers across the country that maintain supplies to grocery stores.
JioMart
By May 2023, Reliance JioMart had fired one thousand employees, after which everyone was worried.
Reliance Jio
At the end of 2022-23, the number of employees of Reliance Jio was 95,326, which has come down to 90,067 at the end of FY 2023-24. That is, the value of Jio has come down by about five and a half percent. After this, the stock of Reliance Industries softened. Plans to expand in technology, retail and finance sector were blocked.
Reasons and effects of layoffs
Recession – Reliance Industries is in financial crisis due to global economic recession. This cut is due to sharp fall in oil prices and fall in demand for petrochemicals. Business has declined. Profit has fallen by 18 to 20 percent.
Low production – Reliance Industries has taken a big step towards digital transformation. Some layoffs have taken place due to low demand in traditional areas.
Restructuring – Reliance has restructured operations. Non-critical sections are closed.
Effects – Job insecurity is increasing psychological stress among employees. Stock market has been affected.
Bleak future – Reliance has not adopted innovation and new technology. Hence the future looks bleak. Not competitive. Investment in digital and technology sector is low. No rehabilitation of employees after layoffs.
Stability of the company is not guaranteed. Financial condition has not improved.
Employee maintenance cost of the company increased by 3 percent year-on-year to Rs. 25,699 crore. It has increased by 33 percent in the financial year 2022-23.
Reliance Retail opened 3,300 new stores in 2022-23, taking the total number of stores to 18 thousand.
Loss
Net profit declined by 5% in the June quarter. Total net profit in the April-June quarter of 2024-25 was Rs. 15,138 crore. Which was Rs. 16,011 crore in the same period a year ago. Earlier, RIL had earned a record Rs 18,951 crore in the January-March quarter.
First company
Profit before tax crossed Rs. 1 lakh crore. It became the first Indian company to do so. Now after this praise, his company became the first company in the country to have a turnover of Rs 21 lakh crore and 42 thousand employees were fired from the company.
Future
All three children of Mukesh Ambani are now getting ready to play important roles. But Mukesh Ambani is not ready to do anything for his company.
Ambani will remain the chairman and managing director of the company for the next five years. Reliance Jio and Reliance Retail IPO vs what is not clear.
Wedding
The township in which Anant Ambani’s pre-wedding was organized. Because 20 thousand employees live here to work in the refinery. Employees were invited to the wedding. And they had to tell in an interview that they are happy.
A year ago
In the presence of Andhra Chief Minister Jagan Mohan Reddy, Mukesh Ambani said, ‘Reliance Retail has partnered with more than 1 lakh 20 thousand grocery merchants in 6 thousand villages of Andhra Pradesh. It has provided more than 20 thousand direct employment in Andhra Pradesh.
Nathwani’s lie
Reliance Industries is the largest company in the refinery, retail and mobile telecom sector in the country.
On January 14, 2022, Reliance’s Director of Corporate Affairs Parimal Nathwani said in the presence of Chief Minister Bhupendra Patel that Reliance will employ 10 lakh people in Gujarat. They were lying in Gujarat even after knowing about the layoffs.
A memorandum of understanding (MoU) was signed with the state government for a total investment of Rs 6 lakh crore including 100 GW of green energy in Gujarat. In the coming time, a total of 10 lakh people will get direct or indirect employment in Gujarat. The company’s director of corporate affairs Parimal Nathwani said in a statement.
A total of 4.5 lakh acres of land will be acquired for green energy projects in Kutch, Banaskantha and Dholera in Gujarat.
Earlier, Mukesh Ambani announced an investment of Rs 75 thousand crore in Jamnagar.
An additional investment of Rs 25,000 crore was also announced by Parimal to Reliance’s oil refineries, petrochemicals and other projects including existing projects in Jamnagar, Dahej and Hazira. Thus, these were the 1 lakh crore investments. In which 90 thousand people were to get employment. In this way, the promise of providing employment to 11 lakh people in Gujarat in 10 years has proved to be a hoax.
Promise of industrialists, employment to lakhs
Promises were made on 19 January 2014.
We will create lakhs of new employment opportunities in Gujarat and prepare AI-savvy doctors, teachers and agricultural systems. -Mukesh Ambani, Chairman, Reliance
• Construction of a green energy park in an area of 725 square kilometers in Kutch at a cost of crores of rupees. The promise of investing 55 thousand crores was fulfilled. – Gautam Adani, Chairman, Adani Group
• We will make 20 GW lithium iron batteries in Sanand and C-295 aircraft, semiconductor plant in Dholera. – N. Chandrasekhar, Chairman, Tata Sons
• The $2.75 billion semiconductor and fab in Sanand will employ 5,000 people. The presence of companies in the semi-conductor sector will create more than 50 thousand jobs. – Sanjay Mehrotra, CEO, Micron
• The Hazira site will become the world’s largest steel producing plant. – Lakshmi Mittal, CEO, ArcelorMittal
• We will be able to produce 1 million EV cars in the state of Gujarat. – Toshihiro Suzuki, Chairman, Suzuki Motor (Google translation from Gujarati)
