The world’s 48th most valuable company, Reliance, recently decided to a significant workforce deduction. The conglomerate, which is known for its vast retail, telecom, and energy operations, decided to lay off and get a workforce deduction by approximately 42,000 employees in the fiscal year 2023-24.
Workforce deduction at Reliance
The annual report published by Reliance has the reference to workforce deduction around 11% of the workforce. In FY23, Reliance had 3,89,000 employees, and they reduced it to 3,47,000 employees in FY24. Around 42,000 employees have been cut down from their jobs at Reliance.
Reliance Industries Ltd. has just released its annual report for FY 2023-24, packed with insights on its progress, priorities, opportunities, and outlook for the coming year. Explore the key highlights and see what's in store for the future. #RelianceAR #RILAnnualReport #WeCare… pic.twitter.com/bIh5k20lOf
— Reliance Industries Limited (@RIL_Updates) August 7, 2024As per the statement, Reliance has taken a strategic step through workforce deduction to be a cost-efficient retail firm. A significant slowdown in opening new stores and expanding has made Reliance take a workforce deduction decision. The number of employees in the retail division decreased from 245,000 to 207,000 during the year. The recruitment process also dropped by over nine-thirds in FY24, from FY23 to just 1,70,000, despite Reliance opening an additional 3,300 stores, bringing the total to 18,836 physical retail locations.
Mukesh Ambani’s Reliance is facing a significant attrition rate and leading to workforce deduction. The number of employees decreased from 95,326 in FY23 to 90,067 in FY24. The high attrition rate is found in the store operations due to the nature of work, lower-entry-level wages and the availability of alternative employment opportunities. A significant attrition rate of 43% is found among non-regular employees. The employees are mainly on fixed-term contracts, part-time workers, apprentices and interns.
Reliance is hiring new employees
The report highlights, “Reliance hired 1.71 Lakh new employees across diverse businesses, expanding its direct workforce to nearly 3.48 Lakh. The impact extends beyond its own employees to numerous indirect livelihood opportunities created within the ecosystem.”
Reliance Retail also hired 171,116 new employees across various businesses, expanding its direct workforce to nearly 348,000. Reliance has the strategic steps to build an ecosystem through which substantial livelihood opportunities will be given both directly and indirectly.
Reliance has a diverse workforce. Of the total employees, 53.9% are below the age of 30, and 21.4% are women. Among the new hires, 81.8% are under 30, and 24% are female. It reflects the company’s emphasis on attracting young talent and promoting gender diversity.
The acquisition of Metro India further strengthens Reliance’s commitment to digitally connect merchants to resources, markets, and the autonomy to thrive. The report stated, “Empowering small businesses is crucial to Reliance Retail’s success. The Company has digitally woven a web of support for lakhs of merchants, granting them access to resources, markets and the autonomy to thrive. The Company further strengthened this commitment by acquiring Metro India.”
Despite the workforce deduction, Reliance has invested heavily in employee development and training. The company provided over 28.80 million person-hours of training across various functions, with an average of 63.97 hours per employee in the retail division alone. So, we cant say that workforce deduction is the only thing that we must look upto.
3,656 employees were cross-skilled and certified through Jio Certifications, and 26 high-potential leaders underwent the six-month “Step Up” leadership development program. This underscores the commitment of Reliance to fostering the right talent and leadership inside the organisation, and workforce deduction is considered the first step.
Strategic Planning of Reliance
11% workforce deduction is indicative of Reliance’s shift towards greater digital integration and operational efficiency. The company reinvested ₹ 1,35,880 Crore in the Group to maintain and develop operations. With a 79.1 million sq. ft. retail area, Reliance aims to transform the retail landscape of India by opening 18,836 retail stores and having a 300 million registered customer base.
In the telecom sector of Reliance, particularly within Jio, there has been a shift toward commission-based job roles, reducing the need for new hiring in field jobs. The substantial investments in digital technologies and streamlined management processes have reached a point where more efficient operations can be achieved with a leaner workforce, according to the report.
Reliance also spent ₹981 Crore on Health, Safety, and Environment (HSE) initiatives. The company’s employee benefits expenses increased by 3% in 2023-24. It is followed by a 33% rise from the previous year.
2024 Goals of Mukesh Ambani
To promote sustainability, Reliance has invested in renewable energies, carbon footprint reduction, green technologies, and environmental conversation measures. In January 2024, the company has taken three targets – global leadership in AI adoption, talent enrichment and cultivation of institutional cultures.
The managing director and chairman of Reliance, Mukesh Ambani believes that India is a beacon of stability and prosperity in the world. The “can do” spirit among 1.4 billion Indians will bring robust growth and economic progress to the country.
Mukesh Ambani said, “Investment in talent brings higher returns than investment in machines”. He added, “Reliance were never complacent in the past and Reliance will never be complacent in the future. We are known for disrupting the market through constant innovation and re-innovation. We have shown the courage to set the bar high and the ability to jump even higher to create new records.”
A mega project of Mukesh Ambani with the name of Dhirubhai Ambani Green Energy Giga Complex will be developed in a 5000-acre area in Jamnagar. The complex will include a Solar PV Giga Factory, with phased operations set to begin by the end of 2024. This initiative is taken to boost renewable energy manufacturing in India.
FAQ
Is Reliance cut jobs in 2024?
Yes. The conglomerate, which is known for its vast retail, telecom, and energy operations, decided to lay off approximately 42,000 employees in the fiscal year 2023-24.
Who is the chairman of Reliance?
The chairman of Reliance is Mukesh Ambani.
How many employees work in Reliance?
In FY23, Reliance had 3,89,000 employees, and they reduced it to 3,47,000 employees in FY24.
What is the mega project for 2024 of Mukesh Ambani?
A mega project with the name of Dhirubhai Ambani Green Energy Giga Complex will be developed in a 5000-acre area in Jamnagar.
Why did Reliance cut 11% of jobs?
A significant slowdown in opening new stores and expanding has made Reliance take a workforce deduction decision.
How many female workers work at Reliance?
Of the total employees, 53.9% are below the age of 30, and 21.4% are women. Among the new hires, 81.8% are under 30, and 24% are female.
Is Reliance investing heavily in solar energy?
Yes. A mega project of Mukesh Ambani with the name of Dhirubhai Ambani Green Energy Giga Complex will be developed in a 5000-acre area in Jamnagar. The complex will include a Solar PV Giga Factory, with phased operations set to begin by the end of 2024.
What kind of benefits have been provided to Reliance workers?
Reliance’s employee benefits expenses increased by 3% in 2023-24. It is followed by a 33% rise from the previous year. The company also spent ₹981 Crore on Health, Safety, and Environment (HSE) initiatives.
