InvestorQ : Why BSNL is about to lay off its 54000 employees?
ananya Sing made post

Why BSNL is about to lay off its 54000 employees?

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1 year ago

I guess anyone who is using BSNL/MTNL services will know that the concept of SERVICE has gone out from both and they are losing customers by the day. Financial Stress is a given under such cases and such steps are necessary to shed the baggage.

Mobiles and Private players have redefined landscape. For urban India, landlines are now passe and if you are among the ones who still have one for any reason will know how complaints are attended.

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Sakshi Malhotra answered.
1 year ago

After the committee report, the board of Bharat Sanchar Nigam Ltd (BSNL) accepted the proposal to cut down the current employee strength. This committee is an external panel that was formed by the government to find a solution for BSNL financial strain. The company is not able to generate enough profit that it is unable to pay its employee salary.
The committee suggested a Voluntary Retirement Scheme (VRS) for employees aged 50 years and above. This suggestion came as the committee found that the average age of BSNL employees was above 55 years. So suggested to reducethe retirement age to 58 from 60 years.
Implementation of the committee’s suggestion led to lay off of 54,000 employees thus, resulting 31% cut in its current 174,312 employees. By following the Voluntary Retirement Scheme (VRS) BSNL will save up to Rs 1,671 crore to Rs 1,921.24 crore annually. Lowering the age of retirement from 60 years to 58 years is accepted by the BSNL board. This will lead to reducing of 33,568 employees thus saving worth Rs 13,895. However, implementation will happen only after the General Election 2019.