The Indian arm of the global leading telecoms gear manufacturer, Ericsson, is adornment and reorganize staff as it faces unexcited operator expend in an intensely competitive market.
Nearly 22 executives across categories have been fired on performance grounds and another 100 are likely to be transferred to sister organisations like Ericsson India Global Services, Ericsson Supply Site Jaipur, R&D centres and the regional technical centres (RTCs) to boost efficiencies, a top company executive aware of the development told ET.
The Swedish vendor, which nearly doubled its India workforce last year to 12,000, is also undertaking a major “people competence” mapping exer-cise in the country to weed out non-performers.
An Ericsson India spokesperson said the present exercise is aimed at aligning the Swedish vendor’s India operations in terms of people, proc-esses, customer focus and diverse skill sets within the organisation. How-ever, the company stressed that there would be no further lay offs in the ongoing performance review.
“As a global employer brand, our endeavour is to help employees grow by providing opportunities to build competencies. But we constantly review competence and managing non-performance is a normal business opera-tions activity for any high performing organisation with a strong base in India,” added the company spokesperson.
The company, declined to comment on whether its teams managing Etisalat’s networks would be impacted following the UAE telecom opera-tor’s recent decision to shut down its India joint venture.
Ericsson manages eight Etisalat circles in the country and had supposedly signed a Euro 400 million (Rs 2640 crore approx) managed services deal spread over five years, but the company did not confirm.
Under Ericsson’s exercise, internally dubbed as the `India transformation’ process, the company will centralise all customer support functions instead of separate units for top customers likeBharti Airtel, Vodafone or Idea at present.
“Standardisation of key processes, especially those relating to proposal or bid management is aimed at responding faster to customer demands,” said the second executive quoted above.
Ericsson recently reported a 66 per cent decline in its global fourth quarter profit as equipment makers the worldover suffer from price erosion and slow buying.
A top executive with a leading international telecoms equipment maker said it was not so much a battle for market-share anymore as it was about maintaining long-term competitiveness and improving profitability.
“Gone are the days, when vendors could offer themselves as one-stop shops. A lean, mean workforce and focussed concentration on wireless and soft drive solutions is increasingly the order of the day,” he said.