13 (Xinhua) — The Indian subsidiary of Wal-Mart India, the world’s largest retailer, is cutting a third of its executives at its local headquarters and is mulling more layoffs, the Economic Times of India reported, citing people familiar with the matter. At a meeting on Friday, Wal-Mart’s Indian subsidiary announced that it would lay off more than 100 senior executives, including vice presidents of purchasing, agricultural operations and consumer goods. The company also plans to close its performance center in Mumbai and suspend new store expansion in India.
After more than a decade in the Indian market, Wal-Mart has been unable to make a profit because of tepid sales growth. The real estate team responsible for the new store’s location has been disbanded, according to the people familiar with the matter.
One source said more people were likely to leave later this year, “which is the first phase of the layoffs, and we expect the next round of redundancies to take place in April.” “
Three people familiar with the matter said Wal-Mart saw no future in its physical business in India and that the job cuts were either a harbinger of a sale or a consolidation with Flipkart’s back-end business.
Wal-Mart acquired Flipkart, an Indian e-commerce platform, in 2018. The company said it had no plans to exit the Wholesale Market in India. A spokesman said: “This is complete nonsense.