Aircel to restructure business into two new divisions

22 Sep 2011

Aircel has undertaken a corporate restructure, splitting its business in to two divisions, the Times of India reports. The Maxis Communications-owned company, it is understood, has created an operating division – which will handle marketing strategies, branding and subscriber additions – and network division – which will take responsibility for the cellco’s infrastructure. An unnamed executive cited by the report claimed that Aircel’s current chief operating officer, Gurdeep Singh, would take control of the operating division, while Sudhir Mathur will head up the network unit.

It has also been suggested that as part of the restricting exercise Malaysia-based Maxis may seek to reduce staff numbers at Aircel. The report claims that up to 10% of Aircel employees could face termination, but such claims have been denied by an Aircel spokesperson, who was quoted as saying: ‘Internally the company continues to routinely make operational moves that improve our efficiency, to ensure that Aircel stands among a list of professionally run companies. There is no question of laying off 600 staff at all, this is absolutely incorrect and baseless.’

Aircel is the latest Indian operator to revise its corporate structure, as companies have sought to cut costs and boost efficiency. As previously reported by CommsUpdate, in July 2011 Bharti Airtel revealed plans to merge three separate businesses which accounted for around 90% of the company’s revenues with its mobile, satellite TV, and fixed line and broadband Telemedia units. The only unit not to be included in the merger plans was Airtel’s enterprise arm, which serves corporate and SME customers and has responsibility for the company’s undersea cable offerings.

India, Aircel, Maxis