Walmart has reportedly fired over 50 Walmart top executives in India. According to reports, the US-based retail giant has fired over 50 Walmart top executives working in the real estate segment. The company is also looking to stop the expansion of new stores in India and will continue to cut the overall staff strength.
The sacked executives mainly included vice presidents from departments such as sourcing, agriculture, consumer goods. Moreover, the company also removed all the staff who are responsible for finding new store locations in India.
The Walmart sources revealed to the media that the company is committed to grow in India. Moreover, they are looking at the possible ways by which their presence can be improved. The sacking is mainly done as part of their corporate restructuring program. The media reports reveal that Walmart top executives and associates will be offered enhanced severance benefits coupled with outplacement services.
The growth of Walmart has been halted with the Government framing stringent rules to protect small and local storekeepers. The rules include companies to act only as marketplaces and also not to sell products at deep discounts.
The move is to protect the 12 million local stores, which is the main driver for the BJP-lead Government. Ever since the rules were enforced, companies like Flipkart and Amazon have been struggling to cope with the business. They had to redesign the business model across the site, fulfillment centers and much more.
The company management is unable to predict the strength of future physical operations. There are reports that Walmart could merge the physical operations with Flipkart. To recall, Walmart had acquired Flipkart for whopping Rs 1.13 lakh crore in 2018, which is regarded as the highest e-commerce acquisition.
From our point of view, Walmart should transform the physical stores as Flipkart offline. This will help customers to pickup their order from the nearest Flipkart offline store. Amazon had arranged customers to pickup their product from the nearest pickup points.
