Reliance Industries Cuts 42,000 Jobs Anupam Mittal Raises Alarm

Major Workforce Reduction Announced Reliance Industries Ltd. (RIL), India’s largest company by market capitalization, has significantly reduced its workforce by 42,000 jobs, representing an 11% decrease in its total employee count. According to a recent report by The Economic Times, the company’s workforce dropped from 3.89 lakh in the 2022-23 fiscal year to 3.47 lakh in 2023-24. This reduction reflects a strategic move by RIL to enhance cost efficiency and streamline operations.

Impact on Retail Sector

The most substantial job cuts have occurred within RIL’s retail division. The number of employees in this segment decreased from 2,45,581 to 2,07,552, accounting for a significant portion of the overall workforce reduction. This move is part of the company’s broader strategy to optimize operational efficiency and adapt to changing market conditions.

Anupam Mittal’s Critique

Anupam Mittal, founder of Shaadi.com and a prominent entrepreneur, has expressed concern over the lack of attention to these layoffs. In a social media post, Mittal questioned why the news of such a large-scale reduction has not been more prominently discussed. He argued that if major companies like Reliance are cutting jobs, it reflects a deeper issue in the job market, which already faces significant challenges in generating new employment opportunities. Mittal highlighted that India requires 8-10 million new jobs annually, and the reduction in workforce at leading firms should serve as a wake-up call for economic and political stakeholders.

Company’s Justification and Future Outlook

RIL’s annual report suggests that the company’s decision to cut jobs is driven by a need to improve cost management and operational efficiency. The reduction in hiring aligns with the company’s strategy to better manage its matured business segments and digital initiatives. While the immediate focus is on reducing operational costs, RIL acknowledges that future business expansions and strategic  shifts could lead to new hiring opportunities.Reliance Industries’ significant workforce reduction has sparked a broader debate about the health of the job market and the need for a robust plan to address employment challenges in India.