Reliance Industries’ online wholesale platform, JioMart, has reportedly initiated a round of layoffs, resulting in more than 1,000 employees losing their jobs.
And the layoffs are set to continue, with as many as 11,000 staff potentially set to lose their jobs.
The decision comes as the company aligns its operations with the recently-acquired Metro Cash and Carry.
This is according to an official quoted in the Economic Times (ET), over the past few days.
JioMart has asked around 1,000 individuals, including 500 executives at its corporate office in Mumbai, to resign.
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Additional job cuts are expected as several employees have already been placed on a performance improvement plan (PIP).
The layoffs are part of a larger cost-cutting initiative that is anticipated to take place over the next few weeks.
This may involve reducing the wholesale division’s workforce of 15,000 employees by two-thirds.
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Furthermore, JioMart is reportedly planning to shut down more than half of its 150-odd fulfillment centers that cater to the supply of groceries and general merchandise to local stores.
With the acquisition of Metro Cash and Carry, which brought in 3,500 permanent employees, there has been an overlap of roles both in backend operations and online sales.
Reliance aims to streamline operations and focus on improving margins while reducing losses. JioMart serves as a B2B platform, replacing traditional distributors for kirana stores.
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It offers competitive pricing, better service levels for onboarding kiranas, credit for working capital, and a digitization strategy that facilitates brand reach and provides enhanced analytics.
Reliance Industries continues to leverage its extensive network of Reliance Retail grocery stores and established supply chain infrastructure to strengthen JioMart’s position in the market.
By optimizing operations, the company aims to enhance profitability and create a more sustainable business model for its online wholesale format.
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