Reliance Industries Reduces Workforce by 11% in FY 2023-24

As reported by the Economic Times, Reliance Industries Ltd. reduced its workforce by 11%, or 42,000 employees, during the financial year 2023-24 compared to the previous year. This reduction is part of the company’s cost-efficiency drive and is particularly prominent in its retail segment.

The total number of employees in Reliance Industries was 347,000 in 2023-24, down from 389,000 in 2022-23. Additionally, the number of recruits was cut by more than a third to 170,000, according to the company’s annual report.

Reliance Industries Reasons for Workforce Reduction:

An analyst from a leading brokerage who wished to remain unnamed stated, “The new lines of businesses at Reliance have matured and now have significant support from digital initiatives.

They are at a stage to better manage operations with optimum strength. This doesn’t mean that headcount won’t increase when new business opportunities emerge and strategy changes. They understand very well how to drive cost management and efficiency.”

Reliance’s retail division accounted for 60% of the company’s total employee strength, with 207,000 employees in 2023-24, down from 245,000 the previous year. Despite the reduction, Reliance Retail opened 3,300 new stores in 2023-24, bringing the total store count to 18,040.

Jio Workforce Reduction:

The workforce at Jio, Reliance’s telecommunications arm, decreased to 90,000 employees in 2023-24, compared to 95,000 the year prior.

Despite the reduction in workforce, Reliance’s employee benefits expense rose by 3% in 2023-24 compared to the previous year. This followed a 33% increase in employee benefits expense in 2022-23 compared to 2021-22.

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