Telenor-PTCL merger may lead to 300-500 layoffs: report

The merger of Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL) is expected to result in significant job cuts, with around 300 to 500 employees being affected as the newly merged company moves to remove overlapping roles, Business Recorder reported, citing sources.

The restructuring follows the legal completion of the merger and is part of the integration process under the merged company, e&. Sources said the exercise has already begun and is expected to continue over the coming weeks.

The review is focused on departments where both companies had parallel teams before the merger. These include sales, marketing, finance, human resources, technology, customer service, and administration.

Before the merger, Telenor Pakistan had around 800 employees. Around 300 employees of Ufone, a wholly-owned subsidiary of PTCL, have already been moved to the company’s headquarters at 345, with more transfers expected as integration progresses.

Sources said the merged workforce is larger than the company’s operational needs. The planned reduction could bring the employee count closer to Jazz, Pakistan’s largest mobile operator, which has around 1,100 employees.

Employees are also concerned that separation packages may be smaller than those offered in earlier telecom mergers. Sources said the compensation being considered is limited to a few months’ salary, unlike the larger Voluntary Separation Scheme packages offered after the Warid-Mobilink merger that led to the creation of Jazz.

Employees expect the restructuring to continue as the company works to reduce costs, settle reporting lines and establish operating structures after Pakistan’s largest telecom consolidation.

Saad Mustafa Waraich, Director Corporate Communications of the merged PTML company, said the organisation was currently focused on integration, governance and policies, and would not comment on speculation regarding internal plans.