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Tata Teleservices may shut shop; over 5000 jobs at risk

After N Chandrasekaran, Chairman of Tata Sons indicated that the Tata Group will be looking at consolidation and pruning its business portfolio, there have been reports that say that the telecom arm of Tata Group may be closed down permanently. Tata Teleservices has been experiencing consistent losses, which is why it has become difficult to sustain the company any longer. As of March 31, 2017, the headcount of Tata Teleservices was 5,101 and all these people risk losing their jobs in case the company is shut down. This will be the first major company under Tata Group to shut down in the history of the group. Sources revealed that the company will give notice period of 3-6 months to employees or severance packages, as the case may be. Tata Group companies normally take care of their employees, but in this case, reappointing them to other group companies would be difficult.

Only a few employees who have the desired qualification to fit in roles in other group companies will be absorbed. However, the company has said that it would consider all options before taking the decision to shut down Tata Teleservices. Shutting down a company hurts all stakeholders and it should be avoided until everything else fails. Reports said that the company has already met government officials and apprised them of the situation. In case the shutdown decision is finalized, the company would sell its 800MHz spectrum.

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