Nothing seems to have been going right for the Walmart acquired multi-billion Dollar e-commerce giant Flipkart. Soon after Binny Bansal stepped down from his post of the chief executive over allegations of “personal misconduct”, reports have emerged that Jabong may lay off up to 50 per cent of its employees.
According to the reports, under a major restructuring effort by Walmart at the Flipkart Group, the e-commerce company is expected to lay off as much as 50 percent of its total employees in Gurugram. Jabong, which has around 400 workers, is said to be undergoing technology and cooperation mergings with that of Myntra’s.
The company was acquired by Myntra in 2016 and has been its subsidiary ever since. Apparently, Myntra was acquired by Flipkart in 2014. If reports are to be believed the lay off may come as a precautionary measure seeing that Jabong has been facing losses in the past two quarters.
Flipkart is owned by Walmart since the record deal was signed between the two in August 2018.
The acquisition took place for $16 billion making it the biggest e-commerce deal in the world.
A formal announced regarding the lay off might be made at the Town Hall meeting later in the day.