In April, this year, the nodal team handling the merger of Vodafone India and Idea Cellular had advised the companies to let go at least 5,000 employees in the next couple of months. Now, as both the telecom companies announce the completion of the $ 23.2 Bn worth merger of their India operations, they look to reduce their employee headcount to 15,000 levels. 

Both the companies would have to shed up to 2,500 from their total staff of 17,500-18,000. While many employees may get absorbed in the parent companies of two telecoms, Aditya Birla Group and Vodafone group, others will have to be let go of. 

Further, the newly merged entity may also control promotions and incentives and even hikes might be skipped this year as the main motive of the company is to settle into the market and pace ahead of the competition. Vodafone Idea is also expecting some voluntary attrition which will automatically reduce the headcount. 

Historically, mergers are followed by job losses, leaving many employees worried about their positions or the changing culture of the company. The Vodafone Idea merger is no different. While about 5,000 jobs have already been lost and more will be lost in the coming months, the company is also looking to safeguard the interests of the employees. The company said it will take care of the welfare of employees completely, with reasonable severance packages and internal transfers within parent companies. The merged entity also stated that "all employees will be treated with respect."

As Vodafone Idea becomes India’s largest telecom company, the union targets $10 Bn synergy benefits from both companies, with a major part being the rationalization of tower tenancies.