The telecom arm of Tata Sons, Tata Teleservices is now making plans on managing their staff as the company is shutting down. With 5,000+ employees on board, the Tata Teleservices will be shutting down by March 31.
The company is reportedly framing VRS (Voluntary Retirement Scheme) for employees beyond a certain age. Also, the circle heads have been asked to leave by March 31 as well. Some of the Tata Teleservices employed in other companies of Tata, but it will be in a small number.
Tata Teleservices to shut down
Tata Teleservices is a 21 years old arm of Tata Sons. Set up in 1996, the company has achieved many milestones. Started as a landline operating telco, the company expanded to CDMA and later to GSM services in 2008.
Right now under a debt of Rs. 30,000 crore, the telecom operator recently lost their partnership with NTT Docomo in 2014. Tata Docomo venture got Tata Teleservices an investment of 14,000 crores from NTT Docomo.
As of now, the top officials, representatives, and promoters of the company have met Department of Telecommunications (DoT) officials to finalize the surrender/sale of the spectrum that currently lies with the company.
About the employees
Tata Teleservices is now planning to disperse the employees of the soon-to-shut telco. While the group aims to absorb some people in other companies, the top officials like ‘Circle Heads’ are given a time frame of 6 months.
In these 3 to 6 months, they could leave the job with the salary of the remaining months of this financial year. Also, some of the senior employees are to be given Voluntary Retirement Scheme (VRS).
An unidentified Senior official has told the Economic Times that, “The Tata Group has always taken care of its people, but very few will get absorbed in other group companies. It is unfair to saddle other Tata companies with employees of TTSL.”