Walmart sacks 50 executives in India

Marco Green
January 14, 2020

It also plans to shut a fulfillment centre in Mumbai as the company's wholesale business is suffering losses. The Bentonville, Ark. based company now operates 28 wholesale stores where it sells goods to small shopkeepers, and not to retail consumers.

Most of the layoffs announced at a townhall on Friday are from the company's real estate vertical.

The company said it "let go" 56 associates-eight in senior management and 48 in the middle and lower management- as part of its review to operate more efficiently.

In a statement, the company which operates almost 28 wholesale stores in the country, said it is looking for ways to operate more efficiently, "which requires it to review its corporate structure to ensure that it is organized in the right way".

Walmart Inc, the world's largest retailer, has fired around 56 of its India executives as part of its restructuring in the country, three sources with direct knowledge told Reuters.

The 56 executives laid off make up for 1 per cent of Walmart's overall workforce in India. United States e-commerce giant Amazon Inc has partnered with India's leading retailer, Future Retail Ltd (FRL) to expand in the country, while richest Indian Mukesh Ambani recently launched an online retailer Jio Mart, offering free home delivery for thousands of grocery products. "We opened 6 new Best Price modern wholesale stores, one Fulfilment Center and our sales grew 22 per cent in 2019", said Krish Iyer, President & CEO, Walmart India.

"Walmart remains committed to growing its B2B Cash & Carry business in India".

"We have recently made significant investments to serve our members better and will continue to do so".

Indian brick-and-mortar traders allege Amazon and Flipkart violate the country's foreign investment rules and burn billions of dollars to offer steep discounts that hurt smaller traders.

A media report stated that Walmart was not optimistic about the future of its brick-and mortar cash-and-carry business in India. Our members are increasingly becoming omni-channel shoppers.

In a statement to The Economic Times newspaper, which first reported the news, Walmart said it was always looking for ways to operate more effectively and that "this requires us to review our corporate structure to ensure that we are organised in the right way to best meet the needs of our members".

The Competition Commission of India is investigating the two companies' e-commerce businesses in the country, it said Monday. A report appearing in the section of the Press speculating second round of layoffs in April is baseless and incorrect. Prevented from selling directly to consumers, the Bentonville, Arkansas-based company has focused on building a wholesale business that supplies local store-owners, and has also pivoted to e-commerce by acquiring Flipkart Online Services Pvt. for $16 billion in 2018.

Walmart started B2B ecommerce in July 2014 from its Lucknow and Hyderabad "Best Price Store" and was later extended to other stores.

Other reports by Click Lancashire

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