Jan 16, 2020
Walmart India is in mayhem as the world’s leading retailer is in the process of sacking about a third of its top executives based at local headquarters in Gurgaon. Loss laden Walmart announced the redundancies of more than 100 senior executives including vice presidents across sourcing, agri-business and the fast-moving consumer goods (FMCG) divisions at a town hall.
It also plans to shut the Mumbai fulfilment centre, its largest warehouse, and halt new-store expansion in India. Revenue has eluded Walmart in India with lukewarm sales growth more than a decade after entering the country. The real estate team responsible for new store locations has been disbanded, according to the people mentioned above.
With all the catastrophes, still Walmart India remains committed to growing in India and are always looking for ways to operate more effectively to serve members. According to Walmart it will review corporate structure to ensure that we are organised in the right way to best meet the needs of our members and impacted associates have been offered enhanced severance benefits and outplacement services to support their transition. More people will probably have to leave later in the year.
Three persons aware of the development said Walmart sees no future in its brick-and mortar cash-and-carry business in the country and the downsizing is either a precursor to selling it or consolidating operations with Flipkart’s backend.