Seems the world’s largest retail player Walmart is taking some serious steps to battle out its losing situation.
As per the latest reports, Walmart India is reportedly removing a third of its top executives at its headquarters in Gurgaon.
In an announcement on January 10, 2020, the company said its sacking more than 100 senior executives including vice-presidents across its different divisions including sourcing, agri business and FMCG.
The company is also planning to shut down its Mumbai-based largest warehouse and halt further expansion in the Indian market.
“This is the first phase of layoffs and we expect the next round by April. Impacted associates have been offered enhanced severance benefits and outplacement services to support their transition,” Walmart India spokesperson said in a statement.
People aware of the developments say that Walmart doesn’t find its future in India and is finding way out through selling or consolidating its operations with Flipkart backend.
Walmart spokesperson denies these statements stating Walmart is deeply committed to growing its cash-and-carry business in India and is making deep investment in technology for its eCommerce business.
“Walmart still has a small presence in India which is a nascent market but will keep growing for several decades,” says Devangshu Dutta, chief executive officer at consultancy firm Third Eyesight.
As the markets show, Walmart India’s Best Price stores had Rs 2,180.8 crore losses until March 2019, followed by Rs 4,095 crore worth sales and Rs 171.6 crore net loss in the last fiscal.