The cut of about 15% of the workforce comprised mainly of in-store brand promoters who were put out of work after thousands of small phone-retailing shops shut down.
India’s handset sector has slashed over 250,000 jobs over the past two years as the rapid growth of e-commerce hurt brick-and-mortar stores and Chinese companies virtually wiped out their local rivals, industry associations said.
The cut of about 15% of the workforce comprised mainly of in-store brand promoters who were put out of work after thousands of small phone-retailing shops shut down, according to industry executives and retailers. India had about 400,000 handset retailing outlets, including mom-and-pop and large-format stores, each of which used to employ three to five in-shop brand representatives, they said.
Besides, Indian and overseas handset companies have reduced retailing expenses to focus on profit. On the manufacturing side, companies including Micromax and Intex have laid off people.
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“More than 250,000 jobs have been lost over the past two years because many retail shops had closed, in-shop promoters have been laid off and even distribution chains had also shut shop,” said Pankaj Mohindroo, president of the Indian Cellular and Electronics Association (ICEA). “Some 20,000-25,000 people on the manufacturing side have also been affected by the job cuts, but it is retail and distribution that have seen the maximum impact.”
Source: Economic Times
