BSNL Plans Massive Layoffs with New VRS Scheme

BSNL, India’s state-owned telecom company, is planning to send thousands of employees home as part of its efforts to improve financial health. The company has proposed a new Voluntary Retirement Scheme (VRS 2.0) to reduce costs and streamline operations. It is estimated that around 18,000 to 19,000 employees could be affected by these layoffs.

BSNL, which is expanding its 4G and 5G network across cities, towns, and villages in India, is also looking at ways to cut down its operating costs. The company has sought approval from the Department of Telecommunications (DoT) to reduce its workforce, with a proposed budget of Rs 1,500 crore for the VRS scheme. This move aims to reduce government spending on workforce management by up to 38%.

Currently, BSNL spends about Rs 7,500 crore annually on managing its workforce. By implementing this voluntary retirement plan, the company hopes to save up to Rs 5,000 crore a year. However, the plan still requires approval from the Cabinet and the Finance Ministry before it can be executed.

In the fiscal year 2024, BSNL’s revenue reached Rs 21,302 crore, a slight increase from the previous year’s Rs 20,699 crore. The company currently employs about 55,000 people, including 25,000 executive-level employees and 30,000 non-executive staff. In 2019, the Government of India had approved a Rs 69,000 crore revival plan to support BSNL and MTNL employees.

The VRS 2.0 scheme is a part of BSNL’s broader strategy to reduce costs, stay competitive in the market, and improve its financial position as it continues to upgrade its network infrastructure.