Reliance JioMart Begins Layoffs, Sacks 1,000 Employees; 9,000 More Job Cuts Likely in Coming Months: Reports
Reliance JioMart has cut down a lot of employees and plans even more job cuts in order to save costs as it tries to win the retail sector.
Mumbai, May 23: Reliance JioMart has fired around 1000 employees in a new round of job cuts. The e-commerce platform also plans to do a more considerable layoff soon that is expected to hit as many as 9,900 positions.
Reportedly, the company has asked over 1,000 people to resign over the past few days, including 500 executives at its corporate office. Reliance has reportedly put several employees on a performance improvement plan (PIP). Reliance Jio in Early Talks With Tesla To Offer Private 5G Network at Elon Musk-Run Company's First Manufacturing Unit in India: Reports.
The Indian retail giant plans to focus on improving its profits. It is facing challenges in balancing its prices and growing its online B2B retail business.
The brand started a price war with considerable discounts in the grocery B2B space. Now, JioMart is planning to close down more than half of its fulfilment centres. It is also expected to reduce the workforce in the wholesale division by almost two-thirds.
Reliance Retail has also purchased the Indian business of Metro AG by paying $344 million. With the addition of Metro's 3,500 workers, some employees may also need to change their jobs or leave the company.
The company's acquisition of Metro Cash and Carry was approved by the Competition Commission of India in 2023. It was initially inked in December 2022 for a whopping Rs 2,850 crore.
Metro’s assets will strengthen Reliance’s B2B position in the market. It will get access to a large base of registered Kiranas, a strong supplier network, and institutional customers. Reliance Jio Adds 30.5 Lakh Mobile Users in March 2023; Vodafone Idea Loses 12 Lakh Users.
As part of the deal, Reliance Retail will be able to use Metro’s stores in cities like Amritsar, Ahmedabad, Hyderabad, Visakhapatnam, Hubballi, Lucknow, Kolkata, Nasik, Surat, Bengaluru, Delhi, Ghaziabad, Indore, Guntur, Vijayawada, and Mumbai.
(The above story first appeared on LatestLY on May 23, 2023 01:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).