In a significant move reflecting broader industry trends, Reliance Industries Limited, India’s largest conglomerate, has reduced its workforce by over 42,000 people during the financial year ending March 2024. This reduction represents an 11% decrease in the company’s overall headcount. The decision to cut jobs comes as Reliance faces slower revenue growth and a reduction in new hiring.
According to Reliance’s annual report, the company hired approximately 171,000 new employees during the financial year, a notable decrease from the 263,000 hires made the previous year. This slowdown in hiring aligns with a broader trend observed in various sectors, including retail and technology.
The report highlights that more than 143,000 employees opted for “voluntary separations.” Reliance Retail, which employs the largest segment of the conglomerate’s workforce, saw a decrease in its personnel from around 246,000 to 207,000. The high turnover rate in retail operations is cited as a factor contributing to this decline.
The layoffs come amidst a period of decelerating revenue growth for Reliance Retail. Despite raising $1.85 billion at a $100 billion valuation last year, the retail unit reported only a 7% increase in revenue for the first quarter of 2024, falling short of the 15%-20% growth anticipated by analysts. Furthermore, Reliance Retail opened only 82 new stores in this period, a stark contrast to the average of 740 stores opened per quarter in fiscal year 2023.
The reduction in workforce is not an isolated case in India. Major IT services companies, including Tata Consultancy Services (TCS), Wipro, and Infosys, collectively cut over 63,750 jobs last financial year, reflecting global trends of tighter labor markets and slower growth.
Reliance’s strategic shift underscores the challenges facing large conglomerates in navigating a complex economic landscape, balancing growth aspirations with operational efficiencies. As Reliance adapts to these new realities, its workforce reduction and slower hiring may impact its future growth trajectories and market positioning.