JioMart job cuts: 1,000 employees laid off, 9,900 more jobs at risk
JioMart, the online shopping platform of Reliance Retail, has recently implemented layoffs affecting more than 1,000 employees. Additionally, the company intends to reduce an estimated 9,900 additional positions in the upcoming weeks. This move is part of the Indian retail giant's strategy to enhance its profit margins.
As per a report from the Indian daily Economic Times, reorganisation has taken place following JioMart's bold pricing approach, which led traditional distributors to consider potential disruptions in the supply chain.
However, the report states that the company's focus has now shifted towards enhancing profit margins and minimising losses, indicating a change in strategy.
In addition, JioMart has announced its intention to shut down more than half of its 150-plus fulfillment centers that serve local stores. This decision aligns with the recent completion of Reliance Retail's acquisition of the Indian cash and carry business from German retailer Metro AG for a total of $344 million.
Reliance, with its significant presence in India's rapidly growing online B2B retail industry, and the addition of Metro's workforce of 3,500 employees, is likely to encounter overlapping roles, leading to further adjustments.