BackJioMart layoffs: Over 1,000 employees, including 500 executives, asked to resign, says report
It has also been reported that JioMart is planning to shut down more than half of its 150-odd fulfilment centres.
PremiumJioMart has reportedly laid off over 1,000 employees as part of its efforts to streamline operations after its acquisition of Metro Cash and Carry. In the coming weeks, the online wholesale format of Reliance Industries plans to implement a larger cost-cutting initiative, which includes reducing its wholesale division's workforce by two-thirds. These measures aim to improve margins and reduce losses after JioMart initiated a price war in the grocery B2B space.
JioMart has asked over 1,000 employees, including 500 executives from its corporate office, to resign, sources familiar with the matter revealed to The Economic Times. Additionally, hundreds of employees have been placed on a performance improvement plan, and the remaining sales staff have been shifted to a variable pay structure, reducing their fixed salaries. LiveMint could not independently verify the claim.
With the recent acquisition of Metro Cash and Carry, which brought in a permanent workforce of 3,500 employees, there is an overlap of roles in both the backend and online sales operations. Consequently, JioMart is planning to shut down more than half of its 150-odd fulfilment centres that supply groceries and general merchandise to neighbourhood stores, the publication added.
JioMart earlier experienced a surge in quarterly orders through WhatsApp, according to senior executives within the company. In August 2022, JioMart and WhatsApp collaborated to integrate their platforms, offering users a seamless shopping experience directly within the social messaging app.
This integration enabled customers to browse the extensive JioMart catalogue, add items to their cart, and make payments, all without leaving the WhatsApp environment. The partnership between Jio Platforms and Meta, which holds a significant minority investment in Jio Platforms, paved the way for this strategic alliance.
India has seen layoffs in various large companies operating in the country. Amazon India was earlier reported to be laying off approximately 500 employees, spanning various businesses and functions.
These job cuts come at a time when the Indian e-commerce industry is witnessing intense competition and companies are constantly reevaluating their strategies to stay ahead in the market.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
