Walmart Inc has fired 56 of its top India executives as a part of its corporate restructuring process, reports stated on Monday.
“As part of this review, we have let go of 56 of our associates across levels at the corporate office. All of the 56 impacted associates (8 in the senior management and 48 in the middle/lower management) have been offered enhanced severance benefits and outplacement services to support their transition,” Krish Iyer, President & CEO, Walmart India, was quoted as saying in IANS report.
Iyer, however, denied the reports about the second round of layoffs in April.
“A report appearing in the section of the Press speculating second round of layoffs in April is baseless and incorrect,” Iyer added.
The move underlines the struggles that the world’s largest retailer has faced in expanding its business in Asia’s second-largest market. Walmart, which acquired Flipkart for $16 billion, owns and operates 28 Best Price Modern Wholesale stores offering nearly 5,000 items in a cash-and-carry wholesale format to the small shopkeepers.
The company also has Fulfillment Centres in Mumbai, Lucknow and Hyderabad.
Iyer said that Walmart remains committed to growing its B2B Cash and Carry business in India.
“We opened six new Best Price modern wholesale stores, one Fulfilment Centre and our sales grew 22 per cent in 2019,” he said.
However, a Reuters report suggest that the company is shifting its focusing on expanding its e-commerce rather that the physical stores, which has resulted in the firings in company’s real estate division.
Walmart India said it has recently made significant investments in the country to serve its members better. This includes investments in brick and mortar stores as well as e-commerce.
“Our members are increasingly becoming omnichannel shoppers. We are thus investing heavily in technology and have a healthy pipeline of Best Price stores. This will provide our members with a truly omnichannel and convenient shopping experience in the future,” the Walmart India CEO added.
(With input from agencies)