Lack of growth in business in the most recent two quarters has prompted online fashion leader Jabong to lay off around 200 to 250 employees. This now comes as a news in the aftermath of the recent exit of the Flipkart Group CEO, Binny Bansal.
In a town hall that was conducted on Friday, November 16, Jabong and Myntra chief Ananth Narayanan told employees that letters pertaining to layoffs will be forwarded shortly. Narayanan too put down his papers, according to Money Control. “Narayanan has negotiated his exit and will remain with the company for another 3-6 months to complete the transition.”
However, the chief denied rumours of his exit. “I am very excited about Myntra. I certainly intend to continue.” According to emerging reports, the company has shared a list of employees who will be asked to leave and the individual letters are to be released very soon.
“Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance and creative teams. The closer integration of Myntra and Jabong is a necessary step in our continuing development,” said a spokesperson from the Flipkart Group.
Flipkart Group now owns three fashion brands – Flipkart Fashion, Jabong and Myntra. However, Myntra and Jabong together have been asked to move all operations to Bengaluru and cut workforce following two growth-less quarters. Employees who don’t get the option to join in Bengaluru office will be offered three months’ pay as severance and 15 days of pay for every year served, in addition to gratuity.
“As previously announced, Kalyan will continue to serve as CEO of Flipkart, while Ananth will continue providing great leadership as CEO of Myntra and Jabong. He will report into Kalyan and the companies will still operate as independent platforms under the Flipkart group,” said the spokesperson.
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