The terse townhall at online fashion retailer Jabong's Gurgaon headquarters on Friday spelt out the arrival of pink slip season in the company. Myntra's CEO Ananth Narayanan reportedly informed the gathering that about 250 jobs - or over 40% of Jabong's total workforce - would be lost courtesy a restructuring exercise, where all operations including technology and corporate functions like HR will get combined with that of Myntra.
The latter had acquired Jabong in July 2016 but they had hitherto operated as separate platforms. The buzz is that Jabong is also likely to move base to Bengaluru.
But there could be more bad news in the offing. A source in the know told The Economic Times that Flipkart's fashion unit Myntra could sack another 200 staff at Jabong in the next three months.
On Friday, Myntra had said in a statement that it had been steadily streamlining processes with Jabong since the takeover, which had resulted in revenue growth and an 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," a company spokesperson told the daily.
"To remain the leader in fashion ecommerce in India, we have to find ways to operate more effectively and innovate more quickly," the person added, but did not respond on the issue of whether more jobs will be eliminated.
The past week has been a rollercoaster ride at the Flipkart Group following its cofounder Binny Bansal's sudden exit. On Tuesday, in its statement announcing Bansal's resignation, Walmart had outlined a significant change in the group. "Going forward, Kalyan Krishnamurthy will continue to be the CEO of Flipkart, which will now include Myntra and Jabong, continuing to operate as separate platforms within the Flipkart business," read the statement.
Then came news of the merging of functions with Myntra, but even after that the Bengaluru company had reiterated that they were keen to keep business under Jabong brand as well.
Edited by Sushmita Agarwal