Tata Teleservices Exit: 5000 Employees to Lose Jobs
Tata Teleservices (TTSL), the telecom unit of Tata Sons has chalked out an exit plan. The company will let go most of its 5,000 employees. The company has faced weak financial performance along with NTT Docomo.
TTSL is one of the first big Tata units to shut down in the group's history of 149 years. Tata Teleservices (TTSL) started out with landline operations in 1996. The company entered the CDMA market in 2002 and eventually joined the GSM race in 2008 along with NTT Docomo. The eventual exit plan was decided between NTT Docomo and TTLS in 2014 for its GSM business.
Tata Teleservices had a strong footprint in wireless network business in 19 circles across the country. The company currently has 4.4% market share. TTLS is known for its integrated telecom solutions to customers across wirelines and wireless networks. Tata Group has planned a proper exit plan for TTLS employees.
The group is offering severance packages for employees that are willing to leave early. Rest employees have been given a notice of three to six months. The group has also planned a voluntary retirement scheme (VRS) for elders. Only a small part of TTLS employees will be moved to other Tata Group companies.
A senior official said, "The Tata Group has always taken care of its people, but very few will get absorbed in other group companies. It is unfair to saddle other Tata companies with employees of TTSL." Company's circle heads have been given time until March 31, 2018. They will be offered a salary for the remaining months.
TTLS is also trying to sell their existing spectrum holdings. Department of Telecommunications (DoT) officials are helping TTLS in surrendering or selling existing spectrum holdings. The company tried to partner with other telecoms in past but it didn't go through due to the debt burden of Rs 30,000 crore.