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Aircel to cut 600 jobs due to surging costs?

Telecom operator Aircel is expected to cut some 600 jobs, or 12% of its workforce in the near future. The company took the decision to reduce its workforce in six of its un-profitable regions, due to surging costs as well as severe margin pressure.

The company will be reducing its operations in the states of Rajasthan, Haryana, Punjab, Madhya Pradesh and Gujarat. Aircel has about 66 million customers in the country, and will be reducing its operations to cut costs and reallocate to profitable zones.

The company has 800 employees and 6 million customers in the five circles it intends to target. Aircel is an Indian arm of Malaysia’s leading telecom operator ‘Maxis Berhad’. The company is the country’s fifth largest mobile carrier, in which Maxis owns 74%. Aircel will be testing its new policies in the state of MP where it will rely on its intra-circle roaming pact with Tata Docomo for coverage, handling customer acquisitions and recharges in the state. The services will be online as well, doing away with the need to have personnel physically present in the state.

One of the company executives, who is aware of the development said that if the MP pilot is successful then the new business model will also be extended in other circles as well where business is not doing well.


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