SUMMARY
JioMart has asked more than 1,000 employees on the ground, including 500 executives at its corporate office to resign over the past few days
With nearly 3,500 more people coming in from Metro Cash and Carry, there is said to be an overlap in roles at the backend and online sales operations
This is said to be a larger cost-cutting measure which will include reducing the 15,000-strong workforce in the wholesale division by two-thirds
Reliance’s online wholesale arm JioMart has reportedly laid off more than 1,000 employees in the wake of acquiring Metro Cash and Carry.
This is said to be a larger cost-cutting measure which will include reducing the 15,000-strong workforce in the wholesale division by two-thirds, per three officials cited by the ET.
The layoffs at JioMart also come three months after JioMart shut down JioMart Express, the quick commerce delivery arm of JioMart launched last March.
According to one of the officials cited by the publication, JioMart has asked more than 1,000 employees on the ground, including 500 executives at its corporate office to resign over the past few days.
The company further has plans to have another large round of layoffs with hundreds of employees being put on a performance improvement plan (PIP). “Rest of the sales employees have been put on variable pay structure after Reliance lowered their fixed pay salary,” official added.
Inc42 has reached out to JioMart for details on the matter and the story will be updated as and when the company responds.
How Metro’s Acquisition Derailed JioMart
Last week, Metro AG, a German retailer, announced the completion of the sale of its Indian business – Metro Cash and Carry – to Reliance Retail for INR 2,850 Cr. With nearly 3,500 more people coming in from Metro, there is said to be an overlap in roles at the backend and online sales operations.
This overlap has resulted in layoffs at JioMart as Reliance Retail looks to streamline its operations.
The company is also planning to shut down more than half of its 150 fulfilment centres that supply groceries and general merchandise to neighbourhood stores.
To recap, JioMart leverages Reliance Retail’s wide network of grocery stores and well-established supply chain infrastructure to drive down costs and increase geographical reach. It also offers lower pricing compared to other distributors, a better service level to onboard Kiranas onto the platform and credit for working capital.
JioMart was also said to be in talks to join the government’s Open Network for Digital Commerce (ONDC).
Earlier this year, reportedly, Reliance Retail’s online wholesale arm was looking to join the digital commerce network on the seller apps side after Reliance-backed logistics platform Grab also joined ONDC as a logistics partner.
