Walmart has started layoffs in India business across its several divisions. This news comes as a shocker for many of its employees in the starting of the year 2020. About 50 to 100 senior level and mid level executives were asked to resign by the company who are from the FMCG, agribiz and sourcing divisions at the Gurugram office.
The largest retailer in the world is also planning to close down a fulfilment center in Mumbai which is the biggest one in India. The slowdown in the wholesale business for Walmart and its planned focus on ecommerce in India could be the possible reasons for the layoffs. The company has spent $16 billion in 2018 to buy a majority stake in India’s top ecommerce website Flipkart.
Walmart entered into the wholesale business in India in 2007 by partnering with Bharti group but in 2013 it bought the Bharti stake and operating on its own. Though revenues are increasing YoY it didn’t turn profitable yet. As per the reports these are the first phase of layoffs and more are expected in April 2020.
Walmart now has 28 Best Price stores and 3 fulfillment centers in India and it sells goods in wholesale. It do not have license to sell to the retail buyers.