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JioMart Acquisition Sparks Layoff Fears: Shocking News of Job Cuts Raises Concerns

1/ Job cuts continue in Reliance JioMart. ๐Ÿ˜ฑ Over 1,000 employees (including 500 executives at Corporate Office) have been impacted, with more layoffs expected. ๐Ÿ˜ž

2/ The move aims to align operations with Metro Cash and Carry and includes reducing the wholesale division's workforce by two-thirds (~10k). ๐Ÿ‘ฅโฌ‡๏ธ Some employees have been put on performance improvement plans. โฐ

3/ Reliance Retail's price war in the grocery B2B space adds to the challenging situation. ๐Ÿ’ฐ๐Ÿ”ช


๐Ÿ’ฐ Estimated Cost Savings: Unquantifiable. ~Rs. 50 Cr. - ~Rs. 250 Cr. per annum๐Ÿ’ธ

๐Ÿ’ผ Cost Optimisation Impact:

1/ Reliance Retail intends to remove duplication of roles as Jio Mart and their acquisition of Metro Cash & Carry (with 3500 employees onboarded) are in the same line of business. ๐Ÿ”„๐Ÿ”€๐Ÿ‘ฅ

2/ Layoffs can lead to a loss of skilled and experienced employees, a decline in productivity, and a negative impact on team spirit. It can weaken the company's reputation and employeesโ€™ loyalty. Attracting and retaining top talent in the future may also become a formidable challenge. โ›”๐Ÿ”ง๐Ÿ‘ฅ


๐ŸŒ Country: India ๐Ÿ‡ฎ๐Ÿ‡ณ

๐Ÿข Company: Reliance Retail Limited (JioMart)

๐Ÿ›๏ธ Industry: Retail

๐Ÿ’ผ Cost Element: Employee Benefits Expense ๐Ÿ’ธ

๐Ÿ” Nature: Opex

๐Ÿ”ข Cost Classification: Semi-Variable Cost + Direct Employees Cost / Operations Overheads / Administrative Overheads / Marketing Overheads


Source: May 23, 2023 | Outlook India | https://www.outlookindia.com/business/reliance-jiomart-layoffs-begin-sack-over-1-000-employees-report-news-288607






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