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Walmart done with firing employees, says no plans of more layoffs in April

FE Online
Walmart India Layoffs, Walmart India Stores

Walmart India Layoffs 50 Executives: US retailer Walmart's India arm is not looking to layoff more employees in April, in response to a media report regarding a second round of layoffs in the near future. The world’s largest retailer laid off about 50 employees from its India business, including eight from the top management. The rest of them were from the middle and lower management. However, the company is not mulling on a second round of layoffs and denied media reports which said that the due date for next firings is in April. "A report appearing in the section of the Press speculating second round of layoffs in April is baseless and incorrect," Krish Iyer, President & CEO, Walmart India, said in a statement.

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Walmart India has offered enhanced severance benefits and outplacement services to the fired employees for transition, Krish Iyer said in the statement. Most of the fired employees belonged to the real estate division of the company, Reuters reported, and were responsible for expanding Walmart's physical foothold. Meanwhile, the US retailer Walmart has been struggling to expand its wholesale business in India. The company currently operates 28 wholesale stores across the country. It also runs three Fulfillment Centres in India in Mumbai, Lucknow and Hyderabad. "We are also looking for ways to operate more efficiently, which requires us to review our corporate structure to ensure that we are organized in the right way," Krish Iyer said in the statement.

While Walmart is struggling with its retail business in India, it has been heavily investing in the e-commerce trade and the layoffs indicate Walmart's shifting focus. "It’s happening because focus is shifting to e-commerce rather than physical (stores)," Reuters cited an unidentified source as saying. The US retailer bought e-commerce platform Flipkart in 2018 in a deal which is pegged at $16 billion. The company also manages the operation of fashion and lifestyle e-tailers Jabong and Myntra.