JioMart, Reliance Retail’s online shopping platform, has laid off over 1,000 employees and plans to cut as many as 9,900 more roles over the coming weeks, according to a report, as the Indian retail giant looks to improve its margins.
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The shakeup, reported by the Indian daily Economic Times, comes in the wake of JioMart’s aggressive pricing strategy, which prompted traditional distributors to contemplate supply disruptions. However, with the firm now focusing on improving margins and reducing losses, the strategy appears to have shifted, the report said.
Furthermore, JioMart plans to close over half of its 150-plus fulfilment centres that supply to neighbourhood stores. The closures coincide with the conclusion of Reliance Retail’s purchase of German retailer Metro AG’s Indian cash and carry business for $344 million.
Reliance’s hefty share of India’s burgeoning online B2B retail sector, and the inclusion of Metro’s 3,500-person workforce, is expected to create overlapping roles, prompting further changes.
Source @TechCrunch
