Staff strength in PSUs drop, Coal India records biggest decline
The workforce of public sector undertakings (PSUs) has been steadily decreasing over recent years. An analysis by CNBC-TV18 reveals that out of the 16 leading state-owned firms by market capitalization, 12 have reported a reduction in their employee count during FY24. The most significant decrease was observed at Coal India. This trend follows a similar pattern from the previous fiscal year.
Coal India and HAL among PSUs reducing workforce
The PSUs that have reduced their workforce include prominent entities such as Coal India, State Bank of India (SBI), and Hindustan Aeronautics Ltd (HAL). Together, these firms have cut their staff strength by 23,306 in FY24, mirroring a similar scale of reduction in FY23. Coal India witnessed a net manpower reduction of 10,349 during the year.
Coal India's wage bill decreases due to staff reduction
Coal India, where 4-5% of employees retire annually, saw its employee count decrease by 9,340 in FY23. This reduction led to a slight decrease in the company's wage bill which constitutes nearly half of its total expenditure. "As the superannuation and attritions of employees are taking place, it is bound to come down," said Mukesh Agrawal, Director of Finance at Coal India post-Q3 FY24 earnings.
SBI's employee count decreases over 5 years
SBI also reported a decrease in its workforce by 3,562 in FY24, following a reduction of 8,392 in FY23. The nation's largest lender has been consistently reducing its total headcount over the past five years. Since FY19, the bank has reduced its employee count by 10%, equating to 25,000 fewer staff members.
Workforce trends in other PSUs and state-owned lenders
The workforce reduction trend is not limited to Coal India and SBI, but extends across sectors including banking, manufacturing, energy, and minerals. Other state-owned lenders like Bank of Baroda, Canara Bank, Punjab National Bank (PNB), and Indian Overseas Bank have also trimmed their staff strength during the fiscal year. However, some firms like SBI Life Insurance, GAIL India, Life Insurance Corporation of India (LIC), and Bharat Electronics have increased their headcount in FY24.
