News From Telecom World

Hit of Recession: Should we Expect Layoffs in Pakistan Telecom Industry?

Posted on: February 11, 2009

Pakistan Telecom industry was considered the cream of Pakistan’s economy, not in terms of employment but also because of its contribution towards national financial system. After the global recession that I have been hearing named as “The Great Recession”, situation in Pakistan Telecom is not as bad as we see in Western Headlines, but it is not so promising as well.

Lately, cellular companies are playing in safe mode and may continuing doing so for a quarter or two, however when we see other components of telecom industry, including vendors to suppliers, distributors to service providers, the business has been hitting the lower limits.

The phenomenon of guaranteed employment has become rare with almost no prospect of replacing current job is a hard reality for a growing number of people. Loud roars of low morale can easily be heard from infrastructure vendors who had their worst time in recent months. With almost no projects in hand, I see them holding their work force with the hope of 3G only. We know that different network vendors dropped couple of hundred employees but I see a dismal situation heading (in 3 months with no 3G and) if the situation remains the same.

As state above, cellular companies are playing in safe mode, with very little new investments and promotions. Recession has reminded the cellcos to get the optimum work from the force with idea of multiple tasking coming into play enormously. Fortunately, cellular companies will not readily down size for next couple of quarters, but getting new resources on board is narrowing down for sure.

Sub contractors, distributors, resellers and other elements of Telecom industry are already undergoing the hard condition. Without any prior experience of recession, this segment remained the worst hit. There are plenty of layoffs already being reported and more to come in near future, especially the sale’s department for franchisers and distributors.


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