Walmart, the world’s largest retailer, has dismissed around 50 of its India executives as part of its restructuring in the nation, three sources with direct knowledge said.
The step underscores the struggles Walmart has confronted in increasing its wholesale enterprise in India. The Bentonville, Ark. based firm at present operates 28 wholesale stores where it sells items to small shopkeepers, and not to retail customers.
The firings mostly affected executives in the firm’s real estate unit because the expansion in the wholesale model has not been that strong, two of the sources stated.
Walmart has placed daring bets on India’s e-commerce market. In 2018, it paid $16 billion to acquire a majority stake in India’s online market Flipkart, in its greatest global acquisition.
The second source added that while Walmart might slow down the tempo of opening new wholesale shops, the focus will more and more be on boosting sales via business-to-business and retail e-commerce.
Some of the executives had been dismissed last week, and more may very well be let go Monday, two sources stated.
In a statement, Walmart mentioned it was always searching for methods to operate more effectively and that “this needs us to overview our corporate structure to make sure that we’re organized in the right way to best meet the requirements of our members”.
Walmart has around 600 employees in its India headquarter out of a total of about 5,300 across the country, one of the sources stated.