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JioMart, following its acquisition of Metro Cash and Carry, has taken steps to streamline operations, reportedly resulting in layoffs of over 1,000 employees. In an effort to enhance profitability and address losses incurred during a grocery B2B price war, JioMart’s online wholesale format, owned by Reliance Industries, intends to implement a comprehensive cost-cutting plan. As part of this initiative, the company plans to reduce its wholesale division’s workforce by two-thirds in the upcoming weeks, aiming to achieve improved margins.
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JioMart has reportedly requested the resignation of more than 1,000 employees, including 500 executives from its corporate office. The company has also implemented a performance improvement plan for hundreds of employees and shifted the remaining sales staff to a variable pay structure, reducing their fixed salaries.
Following the acquisition of Metro Cash and Carry, JioMart is faced with a situation where there is redundancy in roles between its existing workforce and the newly acquired workforce of 3,500 employees. As a result, JioMart is reportedly considering the closure of over half of its approximately 150 fulfillment centers, which serve as the supply hubs for groceries and general merchandise to local stores.
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Senior executives at JioMart have confirmed a significant increase in quarterly orders facilitated through WhatsApp. In August 2022, JioMart joined forces with WhatsApp to integrate their platforms, providing users with a seamless shopping experience within the messaging app itself. This collaboration allowed customers to browse JioMart’s extensive catalog, add items to their cart, and make payments without having to leave the WhatsApp environment. The partnership was made possible through the alliance between Jio Platforms and Meta, the company with a substantial minority investment in Jio Platforms.
India’s corporate landscape has witnessed a wave of layoffs, with reports indicating that Amazon India is cutting around 500 positions across different roles and departments. The downsizing aligns with the intense competition in the Indian e-commerce sector, prompting companies to reassess their strategies in order to maintain a competitive edge.
