Tata Tele to merge CDMA, GSM arms amid job cuts

Tata Teleservices, the telecom unit of the Tata Group, has decided to combine its CDMA and GSM divisions into one unit in order to reduce operating costs and enhance its profitability.

This move will involve layoffs of about 15 per cent of the staff, including underperforming staff. The two divisions provide mobile services using different technologies.

Meanwhile, another report says that for a dozen senior executives of Tata Teleservices Ltd (TTSL), it was a black Monday as they lost their jobs. Three others have been put on notice and are expected to be shunted out.

The circle operating officers of the company's CDMA - or code division multiple access - division asked to leave were stationed across telecom circles in North, South and East India.

Of these 15 executives, according to Daily Bhaskar, there is a possibility of three being moved to newer assignments and retained within the organisation, but the other dozen have been asked to leave with immediate effect and have been offered three to eight months' salary as severance package depending on seniority.

The move is believed to be part of Tata Tele's efforts to better align its CDMA operations with the larger and more popular GSM operations to reduce operational redundancy and improve cost structures.