Reliance Industries online wholesale format JioMart has reportedly laid off more than 1,000 employees as part of its operations with the recently acquired Metro Cash and Carry. These measures aim to improve the margins and reduce losses after JioMart initiated a price war in the grocery B2B space.
Additionally, it is planning to implement a larger cost-cutting measure over the next few weeks which will include reducing the 15,000 workforce in the wholesale division by two-thirds, sources familiar with the matter revealed to The Economic Times.
According to The Economic Times report, the company has asked over 1,000 people on ground including 500 executives at its corporate office to resign over the past few days. It also plans to have another large round of layoffs with hundreds of employees already put on performance improvement plan (PIP).
This comes after JioMart added over 3,300 new store in the financial year 2022-23.
With the addition of Metro’s permanent workforce of 3,500 people, there will be an overlap of roles both at the backend and online sales operations. The company is planning to shut more than half of its 150-odd fulfilment centres that supply groceries and general merchandise to neighbourhood stores, added the publication.