RCom Reportedly Lets Go of 380 Employees for Non-Performance

Reliance Communications is learnt to have sacked nearly 380 employees for below-par performance, and 260 more are seen to be in the line of fire.

"RCom under its performance management system has asked around 380 people to leave the company for non-performance. It may sack another 260 people for the same reason," a source told PTI.

Faced with cut-throat competition, RCom had reported its first ever consolidated net loss of Rs. 531 crores in the December quarter.

The merger of SSTL with RCom is expected to be complete by the end of this month. RCom is believed to have paid second instalment of Rs. 396 crores spectrum purchased and interconnection usage charge of around Rs. 25 crores, among others.

"In the merger process, the liability spectrum instalments of SSTL have come on to RCom. The company cleared IUC payment to a telecom operator after gap of around 2 months. The rest of the payments were as per schedule," the source said. The Anil Ambani-led RCom did not comment on a query sent to it.

Icra has downgraded the long-term rating of Rs. 5,000 crores debt in the form of non-convertible debenture. Credit ratings are ascertained based on the company's ability to serve or pay back debt.