Myntra, India’s second-largest fashion e-tailer after Flipkart Fashion, is likely to eliminate about 50 roles in a restructuring move that will impact people across the organisation.
The decision comes at a time when the rate of increase in e-commerce gross merchandise value (GMV) has slowed in the previous financial year (FY), according to Redseer. E-tailing GMV grew by about 44 percent from $25 billion in FY20 to $36 billion in FY21 which further increased by around 36 percent YoY to $49 billion in FY22. The pace of YoY growth, however, slowed sharply to 22 percent in FY23 when the GMV increased to $60 billion.
A Myntra spokesperson confirmed the developments but did not provide specifics. “In our endeavor to cater to the ever-evolving needs of our customers, new developments, and technology innovations, we recalibrate our business priorities and review our organizational structure from time to time," they said.
"As part of this business-as-usual recalibration, wherever a small number of roles may be impacted, we offer our employees an opportunity to alternate positions, where available, within the organization as well as Group companies,” the statement added.
There are also chances that some of the impacted employees will be given a job at one of the Flipkart companies, in which case the number of people being affected will be lower. Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip are all brands under the Flipkart umbrella.
The Economic Times first reported the development saying the decision would majorly impact employees working on Myntra’s private labels which include Roadster, HRX, and Mast and Harbour among several others.
The decision to eliminate roles comes as Myntra looks to put itself on a path towards profitability. Last month, Moneycontrol had reported that Myntra had even started levying a convenience fee of Rs 10 on every order placed on the platform which would provide some support to Myntra’s financials.
Along with a convenience fee, Myntra also launched Myntra Minis, a short-form video platform similar to Instagram Reels and TikToks, which was likely to increase user engagement and eventually drive up sales.
Short-form videos are particularly a hit among the Gen Z population, a base that is becoming increasingly important for shopping platforms. To capitalise on the opportunity, the Walmart-owned e-tailer launched FWD, a Gen Z -focused immersive fashion experience on its platform and expects to add 10 million new customers over the next two years.
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