Jabong to start layoffs as part of restructuring at Flipkart group


With the news of Flipkart Group’s fashion portal Jabong being completely merged into Myntra, Walmart is set to carry out a massive layoff at Jabong and integrate the online fashion retailer completely into Myntra.

Bengaluru, 16th Nov, 2018. RedNewswire/-

The Jabong layoffs are expected to be announced at a town hall early on Friday morning, according to three people aware of the development. While Flipkart employees were not informed about a town hall, Myntra and Jabong Chief Executive Officer Ananth Narayanan who was present at Jabong’s Gurgaon office addressed all the employees directly, sources in the company said. Narayanan will continue to lead the team, said a Myntra spokesperson.

Jabong currently has 600-700 employees, a majority of whom are expected to be retained and will become employees of Myntra, the people mentioned above said. About 150-200 employees are expected to be laid off, they added. The Jabong site will continue to run, but the traffic from the website will be directed to Myntra, after the merger with Myntra is completed.

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The two entities Jabong and Myntra have been brought under the control of Flipkart CEO Kalyan Krishnamurthy following co-founder Binny Bansal’s exit as Group CEO earlier this week.

The move to is expected to start with a restructuring of Jabong, where all operations including technology and corporate functions like HR and finance will get combined with those of Myntra’s, two sources said. Jabong is also likely to move base to Bengaluru from Gurgaon.

Sources said that about 10 percent of Myntra-Jabong roles will be affected by this restructuring and one-one-one discussions will also be held with each Jabong employee as the company gears up for its biggest transformation.

The Myntra spokesperson, however, said in an e-mail response that the fashion arm’s independence as a business will be preserved and the Jabong brand will remain.

“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience. Myntra and Jabong will now fully integrate all the remaining functions, including technology, marketing, category, revenue, finance and creative teams,” said the spokesperson. “The closer integration of Myntra and Jabong is a necessary step in our continuing development.”

“The Flipkart group is committed to the success of Myntra and growing the business, now more than ever. The Myntra team has been doing innovative work to grow the company and create India’s leading online platforms for fashion and lifestyle. We want to empower the Myntra team to continue to operate independently to achieve even greater success,” Krishnamurthy said in the statement.

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