JioMart fires 1000 staff which may cross 10000+ soon! Most of the fired staff are from sales teams. It’s expected as Reliance recently put its sales staff on a variable pay structure after lowering fixed salaries. Though it looks like a big layoff, it’s only a fraction of the company’s 400,000 retail workforces.
Layoffs will impact other retail divisions soon.
Let’s understand 5 reasons why JioMart is forced to sack thousands of workers:
1. Shutdown:
3 months ago, it closed its quick commerce delivery arm JioMart Express which was only launched in March 2022.
2. Acquisition:
As Reliance Retail completed acquisition of Metro Cash and Carry for Rs 2850 Crore, 3500+ workers and 31 stores got added to it.
It came up with many similar roles in backend and online sales.
3. Plans:
As it’s planned to close its 150+ fulfillment centers which supply groceries and general goods, it’ll cut off more employees.
Even JioMart’s 15000 workforce will drop to 5000 soon.
4. Profitability:
It’s now targeting to reduce losses and improve margins because it suffered from a price war of heavy discounts.
5. Concerns of distributors:
Traditional distributors raised complaints about company’s aggressive discounts.
As a JioMart partner, they asked for long-term financial viability. Though Reliance Retail has opened 3300+ new stores in 2022-23, it is shifting its focus from e-commerce to other sectors. On other hand, it’s streamlining its operations.
According to JP Morgan, Metro’s assets will empower Reliance’s B2B offers because of more:
– Registered Kiranas.
– Institutional customers.
– Strong supplier network and more.
Isha Ambani’s JioMart is under a complete transition.✨ It’ll be interesting to see how JioMart takes on BigBasket, Zepto, instamart, and others next.
Can JioMart make a comeback?⚡
Which player will win the biggest share of the market?