Reliance Industries, India’s largest conglomerate, laid off 42,000 employees in FY24, reducing its workforce to 171,000 in a move aimed at cost efficiency.
According to the company’s annual report, the layoffs were part of a broader strategy to streamline operations and curb hiring, similar to the 63,750 job cuts by leading IT firms such as TCS, Wipro, and Infosys in the same fiscal year.
Reliance’s workforce shrank from 263,000 employees the previous year, with over 143,000 opting for voluntary separation. The company’s largest vertical, Reliance Retail, saw its employee count drop from 246,000 to 207,000, reflecting high turnover rates, especially in in-store operations.
Despite raising $1.85 billion in funding, Reliance Retail experienced a decline in revenue growth, reporting only a 7% increase in the first quarter, far below the expected 15%-20%. Additionally, the unit opened just 82 new stores in the quarter, a significant drop from the average of 740 stores per quarter in fiscal year 2023.
Social Media Reaction:
The layoffs sparked backlash online, with many criticizing the company for the job cuts.
One user commented, “Fired 42,000 employees & destroyed their lives but splashed ₹5000 crores on a son’s wedding.”
Another remarked, “People always say billionaire businessmen create jobs, but where are those people now? This is the harsh reality—cut jobs as soon as profits rise. We need industrialists like Tata, not businessmen like Ambani.”
A third added, “42,000 employees laid off for ‘cost-efficiency’? Yet, spending ₹83 crore on Justin Bieber and ₹5000 crores on a wedding was considered efficient?”
A fourth user pointed out, “₹5000 crores divided by 42,000 equals approximately ₹11 lakhs. That’s the average salary needed to sustain a family for a year. Such a massive loss for so many.”