Educomp on cost optimisation mode; cuts 3,500 jobs

The plan entails modifications in structure,systems and sales strategies to return the firm to profitability in the current and following fiscal. Within this transformational plan,a series of tactical steps have been identified to fast-track the correction,it added.

Redundancies are being calibrated in a progressive manner and employee strength is being rationalised. Contracts of unproductive staff are being terminated,while enhancing responsibilities among existing staff to control costs without impacting performance,it said. Over the last three months,the company has let go over 3,500 employees. This alone has the potential of significant savings for the company, Educomp said.

Collections are being prioritised and a zero-tolerance regime for recoveries has been initiated and around 750 schools which have delayed payments have been sent notices,it said.