JioMart, the grocery B2B platform owned by Reliance Industries, has reportedly laid off over 1,000 employees, including 500 executives, as part of its efforts to streamline operations. These layoffs come after JioMart’s acquisition of Metro Cash and Carry, with plans to reduce the wholesale division’s workforce by two-thirds to improve margins and reduce losses.
Sources familiar with the matter revealed that JioMart has asked employees to resign, placed hundreds on a performance improvement plan, and shifted the remaining sales staff to a variable pay structure. The company aims to optimize its workforce and enhance cost-cutting measures. While LiveMint could not independently verify the claims, the acquisition of Metro Cash and Carry brought an overlap of roles, leading JioMart to consider shutting down more than half of its fulfilment centers.
In August 2022, JioMart experienced a surge in orders through its integration with WhatsApp. The collaboration between JioMart and WhatsApp allowed users to shop seamlessly within the messaging app, browse products, add items to their cart, and make payments. This strategic alliance was made possible by the partnership between Jio Platforms and Meta, which holds a significant minority investment in Jio Platforms.
These layoffs in the Indian e-commerce industry reflect the intense competition and the need for companies to reassess their strategies to stay ahead in the market. JioMart’s cost-cutting initiatives aim to improve profitability and navigate the evolving landscape of online grocery retail.