Jabong lays off 200-250 employees as growth slows down
Online fashion retailer Jabong has decided to lay off about 200-250 staff in a massive retrenchment exercise following the exit of Binny Bansal, sources told Moneycontrol. In a town hall that lasted about 10 minutes on Friday, Myntra and Jabong chief Ananth Narayanan told employees that letters relating to the layoffs will be given shortly.
Narayanan puts in his papers Thursday night, according to one of the sources. Even CFO Dipanjan Basu is learning to have resigned.
Sources said the company has shared a list of employees asked to leave with team heads and individual letters will be given soon.
Executives with designations of deputy general manager and above have been informed verbally about the decision, a source said. Moneycontrol first reported about the layoffs earlier in the day.
The decision is learned to have been taken following a lack of growth in Jabong's business over the last two quarters.
A list of people who will be fired and those who will be transferred have been shared with the respective teams, sources said. The employees who do not get the option to join Bengaluru will be offered three months' pay as severance and 1[ads1]5 days of pay for every year served, besides gratuity.
Flipkart owns three fashion brands under its umbrella – Flipkart Fashion, Myntra and Jabong. Myntra and Jabong together have been asked to move all operations to Bengaluru and cut workforce.
On the cost front, it would not make sense for Walmart – which acquired Flipchart earlier this year – to keep pumping cash into three different brands. [19659002] On Thursday, Moneycontrol reported that after Bansal's exit, a ruling that Flipkart Group was imminent, because of which many senior leaders including Ananth Narayanan, CEO of Myntra and Jabong, could leave the company.
While Myntra and Flipkart did not respond immediately to emails sent on the mass retrenchment development, in an email on Thursday, a Flipcard spokesperson had said: "We are excited with the progress we make at Myntra and Jabong and their business growth. "As previously announced, Kalyan will continue to serve as CEO or Flipkart, while Ananth will continue to provide providence."
"As previously announced, Kalyan will continue to serve as CEO or Flipkart, while Ananth will continue provid ing great leadership as CEO of Myntra / Jabong. He will report to Kalyan and the companies will still operate as independent platforms under the Flipkart group. "
