56 executives of the largest retailer of the world Walmart were fired by the company in India which included eight executive in senior management positions, said the President and CEO of Walmart’s India unit, Krish Iyer.
Rumors in the press that the company would be laying off more staff in April were false, Iyer said in a n emailed statement to the media.
The layoffs were part of the company’s efforts to streamline and restructure the company. These layoffs and the restructuring efforts underscored the issue that the company has been facing in the Indian market in expanding its wholesale business. There are currently 28 wholesale stores operated in India by the Bentonville, Ark. based company where shopkeepers are sold the products. The company does not sell its products to retail customers.
According to media reports, most of the layoffs were of those executives attached to the real estate division of the company because it has not been able to make much growth in its wholesale model of business.
"It's happening because focus is shifting to e-commerce rather than physical (stores)," said a report quoting a source with knowledge of the matter.
However the company had made large investment in the e-commerce industry in India. Walmart acquires a majority stake in India's online marketplace Flipkart, in 2018 in a deal worth $16 billion – which was the biggest ever acquisition of the company,. According to reports, the focus of the company for expansion in India would be on boosting sale and business through its business-to-business and retail e-commerce platforms even though the company might slowdown the pace of opening new wholesale stores in India,
According to reports, the company had sacked some executives last week and some were laid off on Monday.
The company was always looking out for means 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", Walmart said in a statement to India's Economic Times newspaper, which the first to report the news of the layoffs.
According to reports quoting sources, there is a total of about 600 staff in the India head office of Walmart out of a total staff of about 5,300 throughout the country.
(Source:www.news18.com)
Rumors in the press that the company would be laying off more staff in April were false, Iyer said in a n emailed statement to the media.
The layoffs were part of the company’s efforts to streamline and restructure the company. These layoffs and the restructuring efforts underscored the issue that the company has been facing in the Indian market in expanding its wholesale business. There are currently 28 wholesale stores operated in India by the Bentonville, Ark. based company where shopkeepers are sold the products. The company does not sell its products to retail customers.
According to media reports, most of the layoffs were of those executives attached to the real estate division of the company because it has not been able to make much growth in its wholesale model of business.
"It's happening because focus is shifting to e-commerce rather than physical (stores)," said a report quoting a source with knowledge of the matter.
However the company had made large investment in the e-commerce industry in India. Walmart acquires a majority stake in India's online marketplace Flipkart, in 2018 in a deal worth $16 billion – which was the biggest ever acquisition of the company,. According to reports, the focus of the company for expansion in India would be on boosting sale and business through its business-to-business and retail e-commerce platforms even though the company might slowdown the pace of opening new wholesale stores in India,
According to reports, the company had sacked some executives last week and some were laid off on Monday.
The company was always looking out for means 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", Walmart said in a statement to India's Economic Times newspaper, which the first to report the news of the layoffs.
According to reports quoting sources, there is a total of about 600 staff in the India head office of Walmart out of a total staff of about 5,300 throughout the country.
(Source:www.news18.com)
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