Over the past three days, Reliance JioMart asked for the resignation of more than 1,000 employees, including 500 executives at its corporate office. Roles at the backend and online sales operations are expected to overlap with the addition of about 3,500 extra personnel from Metro Cash and Carry.
This is reportedly part of a bigger cost-cutting initiative that will result in a two-thirds reduction in the 15,000-person workforce in the wholesale sector. Following the acquisition of Metro Cash & Carry, JioMart, the online wholesale division of Reliance, is said to have let go of more than 1,000 staff members.
According to three officials, this is part of a bigger cost-cutting initiative that would see the wholesale division’s 15,000 employees cut by two-thirds. JioMart’s layoffs came three months after the company shut down JioMart Express, its quick-commerce delivery division that was introduced in March.
Reliance JioMart has reportedly asked more than 1,000 staff on the ground, including 500 executives at its corporate headquarters, to leave during the past few days, according to one of the officials mentioned by the publication. The corporation also intends to place hundreds of employees on a performance improvement plan (PIP) as part of yet another significant round of layoffs. After Reliance reduced their fixed pay compensation, the remainder of the sales staff were placed on a variable pay structure, the official continued.
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This can be the reason for Reliance JioMart firing employees:
German retailer Metro AG stated last week that it had successfully sold Metro Cash and Carry, which it has operated in India, to Reliance Retail for INR 2,850 Cr. There are reportedly overlaps in the backend and online sales operations responsibilities with the addition of about 3,500 extra workers from Metro.
Reliance JioMart has experienced layoffs as a result of this overlap as Reliance Retail seeks to optimize its business processes. Additionally, the business intends to close more than half of its 150 fulfilment centre, which provide groceries and other products to neighbourhood stores.
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