In a bid to streamline operations after buying Metro Cash & Carry, JioMart is said to have laid off around 1,000 employees. Reliance Industries' online wholesale division intends to adopt a wider cost-cutting plan in the upcoming weeks that involves a two-thirds staff reduction in its wholesale division. After JioMart started a pricing war in the B2B grocery market, these tactics are meant to increase margins and decrease losses.
Over 1,000 staff, including 500 executives from JioMart's corporate office, have reportedly been asked to quit. The remaining employess workers have been moved to a variable pay system, cutting their fixed income, and hundreds of people have been placed on a performance improvement plan. LiveMint was unable to independently confirm the assertion.
There is a crossover of responsibilities in the backend and online sales operations as a result of the recent acquisition of Metro Cash and Carry, which added 3,500 permanent employees. Accordingly, JioMart intends to close more than half of its 150 or so fulfilment centres, which provide groceries and other items to neighbourhood stores.
According to senior company executives, JioMart seen a spike in quarterly orders through WhatsApp in the past. JioMart and WhatsApp worked together to merge their systems in August 2022, giving users a seamless purchasing experience inside the social messaging service.
Customers were able to browse the large JioMart catalogue, add goods to their cart, and complete purchases all within the WhatsApp platform thanks to this integration. This strategic relationship was made possible by the collaboration between Jio Platforms and Meta, which has a sizeable minority stake in Jio Platforms.
Numerous significant multinational corporations with operations in India have made layoffs. A previous report claimed that 500 employees from different companies and responsibilities at Amazon India would be laid go.
These layoffs occur at a time when the Indian e-commerce market is experiencing fierce competition and businesses are routinely revising their strategy to remain competitive.
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