Archive for October 22nd, 2007

PTCL Separation Scheme Plans

Published by Babar Bhatti on October 22, 2007 under Business, PTCL, Pakistan, Telecommunications

PTCL is another step closer to its previously announced plans to let go of employees as it has permission for the Rs 17 billion transaction. These are not layoffs in the strict sense. These are voluntary separations. There is more reported in DAWN but the package details are still not known.

I have seen many such schemes during my work life and I think they are not necessarily a negative thing. For one thing this is the reality of our age - more and more companies are going this route and lifetime jobs are becoming a thing of past. For the employees it can be a handsome package that allows them to try out something new. PTCL can afford to provide a good deal in return for a smooth transition to a “new” organization. This can be a particularly good option for those PTCL employees who have marketable skills and are able to find some other job. For PTCL itself this can mean a number of things - lesser employees, lower overhead, ability to bring in younger, fresh blood and the chance to make its investors happy. However if PTCL fails to capitalize on this and its leadership cannot make a positive change these advantages will be short-lived.

Further analysis will follow when the package deal details are announced.