Walmart fires 56 executives including eight from senior management levels : Sources
Retail giant Walmart is firing a third of its senior executives at its India head office in Gurugram, The Economic Times reported.
Those that have been laid-off include vice presidents across sourcing, agri-business and FMCG divisions, the report stated.
In a related media report, Reuters said the retailer sacked 50 executives across the country.
Walmart India announced the downsizing at a town hall on January 10, the report said. A second round of layoffs may happen by April, a source told the paper.
The company is also considering closing its Mumbai fulfilment centre, its largest warehouse, and pause new-store expansion in India, the report added.
“We are always looking for ways to operate more effectively to serve our members. 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,” the paper quotes a Walmart India spokesperson as saying.
Walmart is not optimistic about the future of its brick-and mortar cash-and-carry business in India, sources told the publication.
Walmart currently operates 28 wholesale stores, where it sells goods to small shopkeepers and not to retail consumers. It had acquired Bengaluru-based ecommerce major Flipkart for $16 billion.
The sacking of top management could indicate that Walmart may sell or consolidate its operations with Flipkart’s backend. A Flipkart spokesperson told the newspaper that the rumours are 'false and baseless'.
“Walmart remains deeply committed to growing its cash-and-carry business in India and is making deep investment in technology to cater to its members’ need through brick-and-mortar and e-commerce,” the spokesperson told the paper.