Reliance, the owner of JioMart, an e-commerce platform, has recently terminated approximately 1,000 employees and is planning to further reduce its workforce by approximately 9,900 positions in the coming weeks. The decision to downsize is driven by the Indian retail giant’s aim to enhance profitability and increase its earnings.
JioMart’s previous practice of offering products at significantly lower prices had raised concerns among traditional distributors about potential supply disruptions, as per a report by the Economic Times. However, the company is now shifting its focus towards generating higher profits and minimising losses, prompting a change in its strategy.
In pursuit of improved profitability, JioMart intends to shut down more than half of its fulfilment centres, which are responsible for product preparation and delivery to local stores. Simultaneously, Reliance Retail has acquired the Indian business of a German retailer named Metro AG, at a cost of $344 million. This acquisition has contributed to JioMart’s strategic adjustments.
Reliance Retail already holds a substantial share of the online business-to-business (B2B) retail market in India. With the addition of Metro AG’s 3,500 employees, there will be some overlap in job roles, necessitating job transitions or departures for certain individuals.
As per insiders, more than 1,000 employees, including 500 executives at the corporate office, have been asked to resign in recent days. Additionally, several hundred employees have been placed on a performance improvement plan (PIP), indicating another significant wave of layoffs in the near future.
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