A few days ago, Walmart-owned Flipkart officially shut down the e-commerce platform Jabong, so that the company can focus on its premium fashion store “Myntra.” Now Myntra has decided to fire around 80 employees in their Gurugram office. These employees are from customer care and product departments.
These 80 employees compose 3% of their overall workforce. Currently, 3000 employees are working for Myntra as of now in India. Flipkart owned Myntra is planning to scrape company costs and consolidating the workforce. Moreover, Myntra has officially confirmed this mass firing.
According to one of Myntra’s official spokesperson – “To drive better efficiencies across the organization, we are consolidating our resources and scaling down operations at our Gurgaon office. We expect this to impact 80 employees across levels at Myntra.” According to the experts, Walmart is cautious about cost and efficiency in its business. For this reason, the decision to consolidate the operation is correct. India’s clothing market is expected to reach $ 59.3 billion by 2022. In this way, it will become the sixth-largest clothing market in the world.
Experts say that this step will help in improving the Walmart business and making the marketing budget more effectively. Given the way the e-commerce market has expanded in India, it is necessary to attract customers again and again. However, online customers do not hold a spot. In this case, it is better to connect them to a platform rather than an individual site. This is the reason why Flipkart owned by Walmart closed Jabong and started focusing on Mynntra.
Many senior leaders are quitting Flipkart
Not only that, some senior leaders in Flipkart reported to have left the company now. Big names like Flipkart CFO Dipanjan Basu and Myntra CEO Ananth Narayanan left the organization in 2019. As per experts in the recruitment segment, Flipkart has suspended all significant hirings since December 2019. This can be viewed as a reason why senior leaders are quitting.