Downsizing in Pakistan

MOBILINK:
Mobilink, the largest cellular operator by subscribers has laid off some 125 employees. The
employees laid off include several senior managers, managers, specialists and others. Because
Mobilink is undertaking a restructuring of its Technology division, in line with changing
business needs and network evolution. It all happened when Mobilinks new owner Vimpelcom
reshaped the subsidiary while spending exorbitantly on media and everywhere. This new wave of
layoffs is also a part of plan that company had paused for a while to avoid any bad patch during
transformation process.
Financial Data
Operating profit (First half of 2013)
Operating profit (First half of 2014)

Amount
PKR 10.9 Billion
PKR 11.5 Billion

Pakistan Telecommunication Company Limited (PTCL)

Pakistan Telecommunication Company Limited (PTCL) has cut 15,000 jobs through Voluntary
Separation Scheme (VSS), second downsizing plan by the company since 2008 when 30,000
employees lost their jobs. Due to contract based employment, employees were uncertain about
their future and decided to voluntarily leave the organization. The VSS package is part of the
restructuring plan of the company, which is being done due to rapidly changing technologies and
increasing competition in the open market.
Financial Data

2012

2011

Operating profit (Rs 000)

11,487,513

11,621,425

Income for the year (Rs 000)

7,244,466

7,458,760

This is because company had paid the huge amount of severance packages Pensions and the
benefits.
WATEEN:
In 2012 Wateen Laid off 40% of their Permanant and Contractual Employees including the
Exectuives manily from the Consumer Division.The Reason for taking such aggressive measures
was that the company was facing a tough business environment and slow growth which made it
hard for the company to continue its operations thats why Wateen going to shut down his
division Wimax which is increasing the liability or incur losses to wateen.

Loss for the year

2012

2013

(18,556,529)

(1,036,757)