Reliance, India’s retail behemoth, has quietly shed over 42,000 jobs in the fiscal year ending March 2024, marking an 11% workforce reduction. The conglomerate’s hiring spree has also slowed dramatically, with new additions plummeting by nearly a third to 171,000 compared to the previous year’s 263,000.
A significant portion of the workforce reduction, over 143,000 employees, opted for voluntary separation, according to the company’s annual report.
Reliance Retail, the conglomerate’s largest division, bore the brunt of the job cuts. With a headcount of approximately 207,000 at the end of the fiscal year, it marked a decline from the previous year’s 246,000. The retail sector’s inherent high turnover, particularly in store operations, exacerbated the issue.
Reliance Retail, valued at $100 billion following a $1.85 billion fundraising, is facing headwinds. Revenue growth has decelerated sharply, with a mere 7% increase in the first quarter compared to the anticipated 15-20%.
The company’s aggressive store expansion has also slowed dramatically, with only 82 new stores opened in the quarter, a stark contrast to the previous year’s average of 740 stores per quarter.
The job cuts at Reliance mirror a broader industry trend. India’s IT services giants—TCS, Wipro, and Infosys—collectively shed over 63,750 jobs in the past fiscal, reflecting a challenging global economic climate and softening IT spending.
Globally, tech companies like Cisco, Dell, and Intel are also reducing their workforce to cut costs and focus on emerging technologies like AI.
Cisco Systems, for instance, is preparing for further layoffs following a reduction of approximately 4,000 positions in February.
With about 84,900 employees as of July 2023, Cisco is pivoting towards high-growth areas such as cybersecurity and AI amid declining demand for its core products and supply chain challenges. In a bid to strengthen its cybersecurity portfolio, Cisco recently acquired Splunk for $28 billion.
Dell Technologies has announced a second round of layoffs within a year, cutting around 12,500 jobs. The company is restructuring its operations to concentrate on AI products and services and is centralising its sales teams.
This strategic move, intended to drive future growth, has raised concerns about job security within the tech industry.
Earlier this month, Intel announced a major cost-cutting initiative, with CEO Pat Gelsinger revealing plans to save $10 billion by cutting 15,000 jobs. This move reflects a broader industry trend of workforce reductions aimed at funding ambitious AI projects.