In an attempt to reduce huge losses for cash strapped BSNL, the department of telecommunications (DoT) has asked the former to begin the process of voluntary retirement (VRS) for its 50,000 employees. The whole exercise may involve Rs. 5000 crore.

The state owned telco has been incurring huge losses and one of remedies to overcome this was to offer VRS to 5000 employees who are expected to retire in the next 5 years. The company currently employs 280,000 employees.

It may be recalled that Sam Pitroda, advisor to the Prime Minister on infrastructure had also recommended  that BSNL reduce its work force by about 100,000.