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- 12 Jan 2012
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RCom may cut jobs in fresh rejig
MUMBAI: Anil Ambani-owned Reliance Communications (RCom), the second-largest Indian telco by subscribers, is likely to undergo a second round of restructuring, close on the heels of the departure of its chief executive Syed Safawi.
The debt-laden telecom major , which had last year trimmed its workforce by 700, may repeat the exercise in the next few months, sources told TOI.
"The process is currently on as far as the second round of restructuring goes. It will result in some top-level changes as well. This, in turn, will mean downsizing of headcount as teams will be realigned," said a person with direct knowledge of the development.
The number of job losses is likely to be in the same range as the initial restructuring . The latest restructuring, sources added, could come into effect by April this year.
On February 1, Syed Safawi, president of its wireless business , exited RCom. People familiar with the development said RCom's performance under Safawi's leadership did not match up to expectations.
Therefore, his contract - which expired in Dec 2011 - was not renewed. Shamik Das has been appointed as the joint president and COO of the company. This will be an interim arrangement and a new CEO will be coming on board soon, RCom said.
"With definitive changes in industry landscape, rapid emergence of newer business opportunities like 3G, mobile broadband data, etc, and evolving regulatory framework, RCom continues to actively evaluate and execute the most relevant organization structure to address the market opportunity ," an RCom spokesperson said when contacted.