Mukesh Ambani owned and Isha Ambani led JioMart recently sacked 1000 employees. According to reports, the company wants to give a pink slip to two-third of the company's 15,000 staffers. This translates into a total of 10000 employees. This means 9000 more will be asked to leave.
In a recent report, ET said an anonymous official had told the paper that they were planning to let go two-thirds of their staffers. Out of the 1000 who were sacked, 500 were corporate employees.
Reliance Retail, the parent company, is led by Isha Ambani, Mukesh Ambani's daughter. Mukesh Ambani is Asia's richest man.
Thousands of employees have been reportedly put under the performance improvement plan (PIP). The entire sales and marketing team's salary structure has been changed, ET reported earlier this week. They have been shifted to a variable pay structure.
The company wants to consolidate its profit by slashing its expenses.
The Reliance Retail Ventures Limited had recently acquired Metro Cash and Carry's 31 stores for Rs 2,850 crore. The company has also taken in their 3500 employees. According to the report, after the acquisition, many roles now overlap. The company also wants to cut its losses.
The Mukesh Ambani owned company is also cutting its 150 fulfillment centres by half. These centres provide material to kirana shops at wholesale rates.
Reliance Retail Ventures Limited scored a profit of Rs 2415 crore in the fourth quarter of 2022-2023. It was an increase of 12.9 percent compared to the corresponding period last year.
