JioMart, the online wholesale arm of Reliance Industries, has reportedly laid off over 1,000 employees following its acquisition of Metro Cash and Carry. The move is part of a larger cost-cutting initiative, with plans to reduce the workforce in the wholesale division by two-thirds, according to officials cited by ET.
The layoffs at JioMart come three months after the closure of JioMart Express, the quick commerce delivery arm launched by JioMart in March. The company has allegedly asked more than 1,000 employees, including 500 executives at its corporate office, to resign in recent days.
Furthermore, JioMart plans to conduct another round of layoffs, putting hundreds of employees on a performance improvement plan. The remaining sales employees have reportedly been transitioned to a variable pay structure after Reliance lowered their fixed pay salaries.
The acquisition of Metro Cash and Carry by Reliance Retail has resulted in overlapping roles in backend and online sales operations, leading to the need for streamlining operations and subsequent layoffs at JioMart. As part of the streamlining process, the company also intends to close more than half of its 150 fulfillment centers responsible for supplying groceries and general merchandise to neighborhood stores.
JioMart leverages the extensive network of grocery stores and well-established supply chain infrastructure of Reliance Retail to offer competitive pricing, better service levels, and credit options to onboard local kiranas (neighborhood stores) onto its platform.
Previously, there were reports of JioMart considering joining the government’s Open Network for Digital Commerce (ONDC). Reliance Retail’s online wholesale arm aimed to join the digital commerce network on the seller apps side, following the inclusion of Reliance-backed logistics platform Grab as a logistics partner.
