Walmart has laid off 56 of its India executives as it restructures business in the country. Walmart is looking for ways to operate more efficiently, which requires it to review its corporate structure “to ensure that we are organized in the right way”, said Krish Iyer, president and CEO of the US-based retail major’s India unit. The fired executives include eight senior management officials, he added. The development comes 18 months after the world’s largest retailer completed the acquisition of Flipkart to become the largest shareholder in the Indian e-commerce firm in a $16-billion deal.
Here’s your 10-point cheat-sheet to this story:
- “Walmart remains committed to growing its B2B Cash & Carry business in India,” Mr Iyer said in an emailed statement. He also said the company keeps looking for ways to operate more effectively.
- Mr Iyer said the layoffs at the company’s India operations are due to a greater incorporation of technology into its local operations and a bigger focus on integrating e-commerce with its brick-and-mortar wholesale business.
- All the 56 associates have been offered enhanced severance benefits and outplacement services to support their transition, Mr Iyer added.
- Walmart has recently made significant investments in its brick-and-mortar stores and e-commerce. “We are thus investing heavily in technology and have a healthy pipeline of Best Price stores,” said Mr Iyer.
- Walmart has opened six new Best Price wholesale stores and one fulfillment centre in India, and its sales grew 22 per cent in 2019, he added.
- The layoff of India workforce comes at a time when the US-based retail major has faced fierce competition in the country’s retail market, where tight regulations are aimed at protecting local kirana stores from foreign players.
- US-based e-commerce giant Amazon and the retail arm of billionaire Mukesh Ambani’s Reliance Industries are eyeing the huge opportunity in the country’s retail market. Reliance Retail has announced plans to roll out its e-commerce venture.
- Prevented from selling directly to consumers, US-based Walmart has focused on building a wholesale business that supplies to local store-owners.
- Walmart termed as “baseless and false” claims that it has withdrawn plans to expand its wholesale business and double the number of wholesale outlets in the next four years were withdrawn. The retailer supplies goods to kirana stores through its wholesale business.
- The Economic Times had earlier said in a report that Walmart was planning further job cuts in April as part of an overall plan to shut down its physical presence in the country after struggling to turn a profit
Source:- ndtvRead more ↓