Owned by Flipkart, Myntra is poised to reduce 50 positions as part of a restructuring effort. The e-commerce company issued a statement stating that the affected employees will have the chance to secure alternative roles within the organisation or its group companies.
Additionally, some of the impacted employees will be offered positions in one of the Flipkart companies.
"As part of this business-as-usual recalibration, wherever a small number of roles may be impacted, we offer our employees an opportunity to alternate positions, where available, within the organization as well as Group companies,” the statement added.
Following observations by Redseer, the rate of growth in e-commerce gross merchandise value (GMV) decelerated during the previous fiscal year. According to the Redseer report, E-tailing GMV experienced an approximate 44% increase from $25 billion in FY20 to $36 billion in FY21.
Subsequently, it further rose by approximately 36% YoY to reach $49 billion in FY22. However, in FY23, the pace of year-on-year growth significantly slowed to 22%, with the GMV reaching $60 billion.
The initial media reports highlighted that the decision would predominantly affect employees engaged in Myntra's private labels, which encompass brands like Roadster, HRX, Mast and Harbour, among others.
This development coincides with Myntra's endeavors to achieve profitability. Last month, the company introduced a convenience fee of Rs 10 on each order placed through its platform, aiming to provide some financial support to Myntra's operations.