The big 2020 layoffs

This week has begun with major layoff news from two big companies, OYO and Walmart. As per an ET OYO announced it is firing thousands across India and China In the same manner loss-laden Walmart India is also in the process of sacking about a third of its top executives based at local headquarters in Gurugram. 

 

 According to reports, Walmart has announced the layoffs of more than 100 senior executives including vice presidents across agro-business and the fast-moving consumer goods (FMCG) divisions.

 

They are also planning to shut the Mumbai fulfillment center, its largest warehouse and halt new store expansion in India.

 

Without a direct hint at the numbers, a Walmart spokesperson has said “We are always looking at ways to operate more effectively to serve our members. This requires us to review our corporate structure to ensure that we are organized in the right way to best meet the needs of our members.” 

 

“Impacted associates have been offered enhanced severance benefits and outplacement services to support their transition,” the spokesperson added.  

 

As per the report, India's best price stores Walmart had faced losses of Rs 2,180.8 Cr until march 2019. It is reported that last year, Walmart India posted sales of Rs 4,095 crore with a net loss of 171.6 crores.

 

Recently, we witnessed a big change at the senior leadership level of Walmart in India with the promotion of Sameer Agarwal in Walmart. He promoted as Deputy Chief Executive officer.

 

On the other hand, the Indian hospitality chain OYO has announced that in a bid to achieve profitability and cut its expenses, the company plans to layoff thousands of employees in India and China. The company has already fired close to 5 % of its 12k employees in China and around 1200 people in India. 

 

This development at OYO reportedly comes in from the pressure of its major investor Softbank which is tightening its noose around OYO and other portfolio companies. The decision of such a huge layoff for OYO can also be attributed to plans of OYO’s public listing in 2022-2023. 

 

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Taniya Tikoo

Editor-in-Chief & Co-Founder at ObserveNow. A Mountain girl using the power of words to change the world.

I dream to wake up to a world where I see a thriving Kashmir, a free Palestine and a Free Tibet 

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