Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
It’s time for over 5,500 employees of the Reliance Group flagship Reliance Communications (RCOM) to bid adieu to Dhirubhai Ambani Knowledge City (DAKC).
Many of them had boasted of pumping chairman Anil Ambani’s hands at the DAKC, when he took over the reins of the company after the demerger of the family empire in 2005. This, Ambani had then admitted, beat the record number of handshakes he did at his wedding reception.
The billionaire industrialist has chalked out a five-pronged strategy to make the telecom elephant dance. He plans to right-size, sell global businesses, securitize Reliance Jio’s receivables, cut costs and monetize real estate assets to make RCOM a leaner, profitable and eventually a debt-free company.
A detailed questionnaire sent to RCOM for a comment on these developments remained unanswered. The loss-making, debt-laden firm plans to shift 5,500 of its call centre employees to a third-party BPO in a massive restructuring exercise to make the company. This comes after the company outsourced its network management services to Ericsson for north and west India and Alcatel-Lucent for east and south India, moving 9,500 employees to its partners’ rolls. The company has reduced the headcount from 25,000 in 2012 to less than 10,000 now. Another 5,500 going off the company rolls will leave RCOM with less than 5,000 employees.
The company has restructured its top management by roping in Vinod Sawhny as CEO of RCOM, William (Bill) Barney as CEO of Reliance Globalcom and Wilfred Kwan as COO of Reliance Globalcom. Original Post at The Times of India