Vodafone-Idea Fires 1500 Indian Employees; Vendors Have Stopped Taking Orders
Some more bad news coming in for Vodafone-Idea.
They have already fired 1500 Indian employees ever since they consolidated telecom circles from 22 to 10.
And now, as a result of this, vendors such as Nokia, Ericsson, Huawei have stopped taking their orders.
What will be the future of Vodafone-Idea?
Vodafone-Idea Fires 1500 Employees
Since Vodafone-Idea has consolidated its presence across India, and reduced the number of telecom circles from 22 to just 10, they have fired 1500 employees pan-India.
Vodafone-Idea already has a debt of Rs 112,000 crore, besides Rs 50,000 crore they owe to the Govt over Adjusted Gross Revenue (AGR) dues.
This mass firing of employees has led to chaos, as various telecom equipment vendors have stopped dealing with Vodafone-Idea now.
Telecom Vendors Stop Dealing With Vodafone-Idea Now
Since the financial stability of Vodafone-Idea in India is doubtful, and business has been reduced, several telecom vendors of equipment and network have stopped taking orders from Vodafone-Idea.
Companies such as Nokia, Ericsson, Huawei, and ZTE have delayed taking new orders from Vodafone-Idea, since they are not sure whether Vodafone-Idea will be able to pay them or not.
This has initiated a vicious cycle: Since Vodafone-Idea hasn’t been able to bring in new equipments, they have not been able to expand and thus, their business is expanding slow, especially against their competitors such as Airtel, Vodafone.
Both European and Chinese vendors now seek financial assurance and security from Vodafone-Idea for conducting any new business.
An unknown person close to the development said, “This has been happening since the last six months or so. European vendors have taken a stand that they need some security against new orders. Chinese vendors that already had flexible payment terms may have also stopped taking new orders as well,”
Since these vendors are seeking letter of credit from Vodafone, they are not able to procure any from the banks because of the massive debt.
For their previous orders, Vodafone-Idea already owes Rs 4000 crore to the vendors, and the things are gloomy.
We will keep you updated, as more details come in.