Walmart India is in the process of sacking around a third of its top executives based at local headquarters in Gurgaon.
According to a report in The Economic Times, the company has announced the layoffs of more than 100 senior executives including vice presidents across sourcing, agri-business and the fast-moving consumer goods (FMCG) divisions. And Walmart also plans to shut the Mumbai fulfillment centre, its largest warehouse, and halt new-store expansion in India.
The report says that, profit has eluded Walmart in India with tepid sales growth more than a decade after entering the country. The real estate team responsible for new store locations has been disbanded.
Though Walmart India didn’t comment on the number of people laid off or store plans but said, “it has no plan to exit the wholesale segment in the country. The company said that it is deeply committed to growing its cash-and-carry business in India and is making a deep investment in technology to cater to its members’ needs through brick-and-mortar and e-commerce.”
Walmart India spokesperson said, “We are always looking for ways to operate more effectively to serve our members. This requires us to review our corporate structure to ensure that we are organized in the right way to best meet the needs of our members.”
“Impacted associates have been offered enhanced severance benefits and outplacement services to support their transition.” Spokesperson added.
Walmart entered India in 2007. It partnered with the Bharti Group in the wholesale business, then bought out its partner’s 50% stake. It terminated franchise and supply agreements related to Bharti’s retail business in 2013. Walmart’s store expansion was put on hold between 2012 and early 2015 amid an internal probe to check if its local unit had in any way violated the US Foreign Corrupt Practices Act that penalizes American companies for bribery and other such wrongdoing overseas.
