Walmart Denies Shutting Shop In India After Layoffs Of Executives

by GoNews Desk 2 weeks ago Views 912
Walmart Denies Shutting Shop In India, After Layof
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World’s largest retailer Walmart Inc. on Monday confirmed that it has fired 56 employees in India as part of business restructuring but denied its plans to exit from the country, Bloomberg reported.

The Economic Times had earlier reported the loss-laden company was planning further firings in April as part of an overall plan to pare its physical presence in India.

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“Walmart announced the layoffs of more than 100 senior executives and also plans to shut the Mumbai fulfillment center, its largest warehouse, and halt new-store expansion in India,” the report said.

Refuting the report as "baseless and incorrect", Walmart India’s Chief Executive Officer Krish Iyer said there will be no more layoffs.

Walmart is “looking for ways to operate more efficiently, which requires us to review our corporate structure,” Iyer said. “As part of this review, we have let go 56 of our associates across levels at the corporate office. All of the 56 impacted associates--eight in the senior management and forty-eight in the middle-to-lower management have been offered enhanced severance benefits and outplacement services to support their transition."

"The layoffs make up 1% of Walmart’s overall workforce in India and new stores will continue to be opened", Bloomberg said quoting sources. "The dismissals were due to a greater incorporation of technology into the U.S. retailer’s local operations."

Walmart India’s sales rose 22% last year, the company said, but did not specify if operations are loss-making.

The Bentonville, Arkansas-based company operates 28 wholesale stores where it sells goods to small shopkeepers, and not to retail consumers.