Declining Workforce in PSUs: An Overview
The trend of workforce reduction isn’t confined to the tech industry; public sector undertakings (PSUs) in India are experiencing a similar scenario. Analysis conducted by CNBC-TV18 reveals that out of the top 16 government companies based on market capitalization, only four have seen an increase in their employee counts over the last fiscal year. In FY 2024, the majority of these PSUs recorded a significant decrease in employee headcount, with a total reduction of 23,306 employees across 12 companies, including major players like Coal India, State Bank of India (SBI), and Hindustan Aeronautics Limited (HAL).
Employee Reduction at Coal India
Coal India saw the most substantial decline in workforce numbers, with an annual retirement rate of approximately 4% to 5%. The company reported a net employee reduction of 10,349 in FY 2024, following a decrease of 9,340 in FY 2023. Notably, the salary expenses for Coal India represent 48% of its total expenditures, and due to the reduced workforce, its salary bill fell by 1% to Rs 48,783 crore in FY 2024.
SBI’s Workforce Trends
Similarly, SBI continues to showcase a downward trend in employee numbers. The bank’s employee count dropped by 10% since FY 2019, which translates to a loss of about 25,000 positions. Specifically, SBI recorded a reduction of 8,392 employees in FY 2023, followed by an additional 3,562 in FY 2024. This trend is evident not only in SBI but also in other public sector banks, including Bank of Baroda, Canara Bank, Punjab National Bank, and Indian Overseas Bank, all of which reported decreases in their workforces during the fiscal year.
Current Employment Landscape in Top PSUs
| PSU Name | Employee Count (As of March 31, 2024) |
|---|---|
| State Bank of India (SBI) | 232,296 |
| Coal India | 230,000 (approx.) |
| Punjab National Bank (PNB) | 102,349 |
New Hiring Initiatives
Despite the widespread job cuts, some PSUs have embraced a proactive hiring approach. Companies such as SBI Life Insurance, GAIL India, Life Insurance Corporation of India (LIC), and Bharat Electronics have increased their personnel. SBI Life Insurance, in particular, added approximately 3,100 employees in FY 2024, while others saw incremental growth in staffing levels, with increases reaching up to 215 employees in some cases.
Conclusion
The data surrounding employee counts in India’s public sector underscores an evolving employment landscape, with some of the largest employers shedding jobs while a few others actively seek to recruit. This duality reflects broader economic and operational challenges facing PSUs as they adjust to changing market conditions and strategic priorities.
