According to an email sent to employees, Myntra
said it was consolidating its resources and scaling down operations. “As a result, roles of some of our friends and co-workers will be impacted. We have had to make some tough calls but we are confident that we are taking the right steps towards our aspirations,” read the email.
When contacted on Friday, Myntra head Amar Nagaram said the company was committed to supporting these employees with compensation packages, extended health benefits, and access to outplacement services. “This was a tough decision, but we believe this move is critical to ensure the sustainable growth of our business in a rapidly changing business environment,” said Nagaram.
People aware of these developments said the company had told the employees it was committed to helping them with a smooth transition to new employment. The compensation packages will include three to eight months full salary, based on tenure, extended health benefits and access to outplacement services.
Myntra will continue to have a smaller presence in Gurugram
and will have approximately 165 people or 5 per cent of the workforce, including catalogue operations and supply chain teams working out there.
According to sources, the lay-off decision was not a sudden. From the past one year, Myntra had been analysing the roles that were redundant or not contributing to the overall vision of the firm and building a profitable business.
Last May, during the final leg of the restructuring process after its parent company Flipkart was bought by Walmart for $16 billion, Myntra had announced creation of a unified workforce by bringing all of the employees of its other fashion unit Jabong into its fold. Jabong had around 400 staff in 2018, of which 180 were laid off the same year and 200 were absorbed by Myntra. The majority of them were located in Gurugram.
Last month, it was revealed that SoftBank-backed Oyo Hotel and Homes is firing 2,400 employees, or 20 per cent of its workforce in India, mainly in sales and business development. It was reported that jobs of about 245 of Uber Eats India have been affected, weeks after Uber Eats India was bought by food delivery firm Zomato.