JioMart, Reliance Retail’s online shopping platform, has laid off more than 1,000 staff and plans to cut up to 9,900 more positions over the next few weeks, according to a report, as the Indian retail giant retail is looking to improve its margins.
The upheaval, reported by the Indian daily Economic Times, comes in the wake of JioMart’s aggressive pricing strategy, which has prompted traditional retailers to consider supply disruptions. However, with the company now focusing on improving margins and reducing losses, the strategy appears to have changed, according to the report.
Additionally, JioMart plans to close more than half of its more than 150 distribution centers that supply neighborhood stores. The closures coincide with the conclusion of Reliance Retail’s purchase of the Indian cash and carry business of German retailer Metro AG for $344 million.
Reliance’s large share of India’s booming online B2B retail sector and the inclusion of Metro’s 3,500 employees are expected to create overlapping roles, driving further change.
