Sterlite Technologies has made the tough decision to lay off approximately 100 employees
Sterlite Technologies (STL), a Pune-based company and a part of the Vedanta Group, has made the tough decision to lay off approximately 100 employees, including senior executives, as part of a restructuring plan. The move comes as STL faces significant business pressure and follows its decision earlier this year to divest its telecom and software units to a US-based firm.
According to an industry executive familiar with the matter, “Close to 100 individuals were asked to leave as the company is facing a tough time. The move is aimed at cutting operational costs, with non-core functions primarily taking a hit.”
STL is a prominent manufacturer of end-to-end optical fiber cables, offering various solutions, including enterprise LAN, fiber-to-the-home, and 5G solutions. However, the layoffs coincide with a period of slow private sector spending on optical networks and stiff competition from multinational giants like Ciena and Nokia on STL’s home turf.
Among the senior executives who have exited the company are Manish Sinha, the Group Chief Marketing Officer, Pankaj Aggarwall, the Chief Financial Officer, Manuj Desai, the Chief Information Officer, and Jitendra Balakrishnan, the Head of Research and Development. Sinha’s resignation was announced in August.
The majority of the affected employees were from the marketing division and Sterlite Academy within the company, as stated by the industry executive.
Aside from a weak order book pipeline and challenges in the telecom sector, STL’s diversification into a service-led organization didn’t yield the desired results, according to insiders.
In the current year, the company’s order book stands at about Rs 10,500 crore across various business units, including optical networking, digital solutions, and global services. Optical networking accounts for nearly 80% of the company’s overall revenue.
The decision to reduce staff is part of a broader strategy to relieve pressure on the company’s balance sheet. It aligns with STL’s focus on its core business activities after transferring the software and telecom business assets to Skyvera LLC, a Texas-based firm to which STL sold its telecom and software businesses in March, as detailed by the industry executive.
These strategic moves are intended to help STL navigate the challenging business landscape, streamline its operations, and position itself for a more sustainable future. It reflects the broader trend of companies adapting to market conditions and making tough decisions to remain competitive.