Telecom operator Aircel is believed to be cutting down operations in at least five circles, starting with Madhya Pradesh, to cut cost of service following severe margin pressures and a maturing voice market.

According to sources, Aircel has told distributors in the MP circle that it plans to restructure its entire business model and it may not require their services anymore.

A similar kind of drive is expected in Gujarat and Haryana next followed by Rajasthan and Punjab later.

The company is also believed to have given transfer orders to various of its staff personnel in the state.

When asked to comment, an Aircel spokesperson said, “Aircel is revamping its business model innovatively to lower ’cost to serve’ without compromising on customer service or network experience.”

However, the spokesperson said that the company is not shutting down its operations in Madhya Pradesh.

“The telecom industry is facing severe margin pressures as the voice market is maturing and the data demand in its true sense is still nascent. Operational costs are high and incremental market demand for relatively new players is prohibitive,” the statement added.

Asked if the company will layoff staff also, the spokesperson refused to comment but said that the company is taking steps to cut down costs and a new business model will be put in place.

“As is obvious with shift in models, the organisation itself is being repurposed,” it added.

According to reports, due to this revamping drive, over 500 people are expected to given pink slips.

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