Barely 48 hours after Binny Bansal’s shocking resignation, Flipkart is probably waiting for another big shake-up. According to Economic Times, India’s largest online retailer may witness exodus of nearly 20 senior executives. However, this exodus has mostly nothing to do with Binny Bansal’s resignation.
The buzz is that this exodus is mostly the result of the long overdue integration of Flipkart with Myntra and its subsidiary unit Jabong. Top sources, who are privy with this matter, claim that Jabong is likely to take the biggest hit in the ongoing restructuring program. Sources, in fact, claim that the fashion e-tailer may witness exit of several non-senior executives as well. Sources are claiming that nearly 40-50% of Jabong’s strong 400 workforce are likely to be laid off due to the restructuring program.
One of the high profile names that is doing the rounds is Ananth Narayan, CEO at Myntra- Jabong.
Most of the senior executives and employees who are waiting for pink slips have already been notified via official as well as unofficial means. Economic Times reports that Bengaluru based recruitment firm The Head Hunters has confirmed about receiving resumes from several outgoing senior executives at Flipkart, Myntra and Jabong.
Many analysts are trying to play down the restructuring phase, claiming that this was pretty much on the cards post-Walmart takeover. The U.S. retail giant may not shy away from taking many more bold decisions in future to ensure that its costly acquisition does pay off in the long run, analysts add.
Analysts raison d’être makes sense, considering that stakes are pretty high for Walmart in India. Especially with Online US retail giant and deep-pocketed player like Amazon breathing down its neck.
Irrespective of how the future shapes up, it now appears that Flipkart is standing on a crossroad. We will have to keep our fingers crossed and hope that things indeed pan out well for India’s most high profile startup poster boy.