Overview of Ongoing Layoffs
Tata Group firms are continuing with their processes of layoffs. Recent reports about Tata Consultancy Services reducing around 12,000 roles have raised concerns among the employees. Now, new information reveals that Tata Digital, the e-commerce and digital services arm of the conglomerate, is planning a huge cut in its workforce.
Reasons for the Decision
The Tata Neu application, launched two years ago, has failed to achieve expected performances. For this reason, heavy staff cuts are foreseen in the related business units. Current reports claim that Tata Digital will lay off over half of its total workforce. This step seems part of a big restructuring plan initiated by the new CEO Sajith Sivanandan.
CEO's Profitability Focus
He highlighted that the firm should focus more on profitability rather than merely seeking an increase in the numbers of sales. Revenue growth and wastage cost reduction are two strategic activities in the case of Tata Digital. It is trying to consolidate all the business units of the digital business on a single platform to develop seamless operations and reduce costs.
Impact on Business Units
The restructuring is likely to impact employees in more than one division. There are also reports of large-scale changes at BigBasket and Croma. Tata Digital has already approved the closure of loss-incurring sites of Croma. Croma may also scale down its e-commerce expansion in this move to cut costs.
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