JioMart Layoffs: Report Reveals Over 1,000 Employees, including 500 Executives, Asked to Resign
Written by Sanjay Kumar
JioMart
Company
- Founder: Mukesh Ambani
- Founded: December 2019
- Available in: Hindi, English
- Employees: 10,000 (2020)
- Headquarters: Navi Mumbai, Maharashtra, India
- Owner: Reliance Industries Limited
As part of its efforts to streamline operations after acquiring Metro Cash and Carry, JioMart has reportedly laid off more than 1,000 employees. The online wholesale format of Reliance Industries plans to implement a larger cost-cutting initiative in the upcoming weeks, aiming to reduce its wholesale division’s workforce by two-thirds. These measures are aimed at improving margins and minimizing losses, following JioMart’s initiation of a price war in the grocery B2B space.
According to sources familiar with the matter, JioMart has asked over 1,000 employees, including 500 executives from its corporate office, to resign. Additionally, several employees have been placed on a performance improvement plan, while the remaining sales staff have been transitioned to a variable pay structure, reducing their fixed salaries. The claim has not been independently verified by Innovative Zone Magazine.
Since the 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 plans to shut down more than half of its 150-odd fulfillment centers responsible for supplying groceries and general merchandise to neighborhood stores.
Earlier, JioMart witnessed a surge in quarterly orders through WhatsApp, as senior executives within the company confirmed. In August 2022, JioMart and WhatsApp collaborated to integrate their platforms, providing users with a seamless shopping experience directly within the social messaging app.
This integration allowed customers to browse the extensive JioMart catalog, add items to their cart, and make payments without leaving the WhatsApp environment. The partnership between Jio Platforms and Meta (formerly Facebook), which holds a significant minority investment in Jio Platforms, paved the way for this strategic alliance.
Job cuts have been observed in several large companies operating in India. Previously, Amazon India was reported to be laying off around 500 employees across various businesses and functions.
These layoffs occur during a time when the Indian e-commerce industry is experiencing fierce competition, prompting companies to constantly reevaluate their strategies in order to maintain a competitive edge in the market.
In conclusion, JioMart’s layoffs and cost-cutting efforts reflect its drive to streamline operations and succeed in the competitive Indian e-commerce industry. The company’s strategic acquisitions and integrations demonstrate its commitment to enhancing the online wholesale format and delivering a seamless shopping experience. However, the layoffs also highlight the ongoing challenges and need for constant adaptation in the dynamic market.
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