XL Axiata-Smartfren Merger: Management promises employees will receive fair compensation if there are layoffs

Liputan6.com, Jakarta – XL Axiata, Smartfren Telecom, and Smart Telcom have announced the merger of the two companies into one entity.

The XL Axiata-Smartfren merger worth more than IDR 104 trillion will later give birth to a new telecommunications company called PT XLSmart Telecom Sejahtera.

Previously, a number of XL Axiata employees through the XL Workers Union expressed concern about the unclear fate of employees, especially regarding the potential reduction in benefits and the threat of layoffs.

Responding to this, Axiata Group Group Chief Executive Officer, Vivek Sood, said that so far the company is still inviting employees to join after the merger because there are jobs that still require a lot of people.

Vivek said, if after some time passes and there are duplicate jobs, at that time perhaps the company will decide to change the structure.

In this case, there may be rationalization or termination of employment relations with a number of employees.

“However, as we have a larger ecosystem, jobs that are coming, I think we will find positions to fill (by employees). If not, we will have to create structures but that will not happen anytime soon,” he said.

Meanwhile, XL Axiata President Director and CEO Dian Siswarini said that both shareholders had spoken and discussed so that the conditions for this merger remained comfortable for employees.