Global retail giant Walmart is in the process of sacking over 50 of their employees based at the Gurugram headquarters in India.
The layoffs include eight top executives including vice-presidents across divisions such as sourcing, agri-business and the fast-moving consumer goods (FMCG).
Walmart India also reportedly plans to shut the Mumbai fulfilment centre, which is its largest warehouse in India and halt new-store expansions in the country.
“Our members are increasingly becoming omni-channel shoppers,” buying both online and offline, Krish Iyer, president and chief executive of Walmart India said in a news release. “We are also looking for ways to operate more efficiently, which requires us to review our corporate structure to ensure that we are organised in the right way.”
Walmart India said that the company has laid off 56 employees, eight in senior management and 48 in middle to low management, in a bid to utilise new trends and technology to better fit into India’s retail market.
India’s massive retail market of kiranas and small shops is largely untouched by global retailers as Walmart was not allowed to sell directly to consumers in the country.
"Walmart remains committed to growing its B2B Cash & Carry business in India. We opened 6 new Best Price modern wholesale stores, one Fulfilment Centre and our sales grew 22 per cent in 2019," said Iyer.
The real estate team that is responsible for new store locations has also been disbanded while most of the layoffs announced at a townhall on Friday were from the company's real estate division.
The company, which bought a majority stake in Flipkart in 2018, is focusing on its B2B e-commerce segment, which is likely making the real estate segment roles redundant.