Diminishing people, denying over exit plans, Walmart India lays off 100 employees at Gurugram HQs

New Delhi, January 13: Walmart India is in the process of sacking about a hundred of employees based at the Gurugram headquarters. The layoffs also include around 10 top executives including vice presidents across divisions such as sourcing, agri-business and the fast moving consumer goods (FMCG) at a townhall on Friday.

 

According to the slated statements, Walmart India plans to shut the Mumbai fulfilment centre, which is its largest warehouse in India. It will also halt all new-store expansions in the country. The real estate team that is responsible for new store locations has also been disbanded. Most of the layoffs are from the company's real estate vertical. The company is focussing on its B2B e-commerce segment, which is likely making the real estate segment roles redundant.

 

 

The move has come as Walmart India is faced with slow sales and elusive profits, even a decade after its entry into the Indian market. Walmart had partnered with Bharti Group in 2007 for the wholesale business. It finally bought Bharti's 50 per cent stake in 2013 to go solo.

 

Walmart India however did not comment on the number of employees it laid off or its plans to halt expansion. It said that it remains committed to growing in India. "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. Impacted associates have been offered enhanced severance benefits and outplacement services to support their transition", said a Walmart India spokesperson.

 

Walmart’s struggles to scale business in India follow stringent foreign direct investment policies in the country that govern the entry of multi-brand retailers in India. Foreign cash and carry or wholesale businesses, on the other hand, are allowed to wholly own and operate such stores in India. As a result, Walmart invested in B2B retail in the country after the retailer faced resistance in setting up its signature front-end stores here as Indian law restricts the entry of foreign multi-brand stores in order to protect the interests of scores of small shopkeepers that form the backbone of the country’s retail trade.