With the news of Flipkart Group’s fashion portal Jabong being completely merged into Myntra trickling in, the environment at the e-commerce arm's Gurgaon office was tense and full of anxiety on Friday.
While Flipkart employees were not informed about a town hall, Myntra and Jabong Chief Executive Officer Ananth Narayanan who was present at Jabong’s Gurgaon office addressed all the employees directly, sources in the company said. Narayanan will continue to lead the team, said a Myntra spokesperson.
Narayanan is learnt to have told the employees that all the roles at Jabong will be merged with that of Myntra. Sources said that about 10 per cent of Myntra-Jabong roles will be affected by this restructuring.
ALSO READ: Twists and turns at Flipkart: Ananth Narayanan to continue as Myntra CEO
Sources added that one-on-one discussions will also be held with each Jabong employee as the company gears up for one of its biggest transformations post US retail giant Walmart acquiring a 77 per cent stake in India’s largest e-commerce marketplace Flipkart in May this year with an investment of $16 billion.
The Myntra spokesperson, however, said in an e-mail response that the fashion arm’s independence as a business will be preserved and the Jabong brand will remain.
“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience. Myntra and Jabong will now fully integrate all the remaining functions, including technology, marketing, category, revenue, finance and creative teams,” said the spokesperson. “The closer integration of Myntra and Jabong is a necessary step in our continuing development."
ALSO READ: Flipkart helps Walmart dodge revenue headwind from stake sale in Brazil
A former senior Jabong employee said: “November has always been a month of big changes at Jabong, along with some unpleasant ones. But somehow, Jabong has always bounced back in a newer and stronger version. However, we are waiting to see what happens this time as it’s not going to be Jabong anymore."
HR experts said following such a restructuring, people will not be out of jobs for long since other e-commerce companies are also hiring majorly and it is just an outcome of location change, skill requirement or the changing DNA of the organisation.
ALSO READ: Binny Bansal holds enough ownership threshold to retain Flipkart board seat
“This move is just an indication and outcome of any merger or acquisition happening in the industry, and the rationale is to get rid of the duplicity. This does not mean that exodus of e-commerce would start happening. However, there may be a rationalisation of manpower which will happen and since e-commerce companies are growing exponentially, a lot of inside opportunities must be available,” said Mayur Saraswat, head of digital, IT and telecom vertical, TeamLease Services.
While Flipkart employees were not informed about a town hall, Myntra and Jabong Chief Executive Officer Ananth Narayanan who was present at Jabong’s Gurgaon office addressed all the employees directly, sources in the company said. Narayanan will continue to lead the team, said a Myntra spokesperson.
Narayanan is learnt to have told the employees that all the roles at Jabong will be merged with that of Myntra. Sources said that about 10 per cent of Myntra-Jabong roles will be affected by this restructuring.
ALSO READ: Twists and turns at Flipkart: Ananth Narayanan to continue as Myntra CEO
Sources added that one-on-one discussions will also be held with each Jabong employee as the company gears up for one of its biggest transformations post US retail giant Walmart acquiring a 77 per cent stake in India’s largest e-commerce marketplace Flipkart in May this year with an investment of $16 billion.
The Myntra spokesperson, however, said in an e-mail response that the fashion arm’s independence as a business will be preserved and the Jabong brand will remain.
“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience. Myntra and Jabong will now fully integrate all the remaining functions, including technology, marketing, category, revenue, finance and creative teams,” said the spokesperson. “The closer integration of Myntra and Jabong is a necessary step in our continuing development."
ALSO READ: Flipkart helps Walmart dodge revenue headwind from stake sale in Brazil
A former senior Jabong employee said: “November has always been a month of big changes at Jabong, along with some unpleasant ones. But somehow, Jabong has always bounced back in a newer and stronger version. However, we are waiting to see what happens this time as it’s not going to be Jabong anymore."
HR experts said following such a restructuring, people will not be out of jobs for long since other e-commerce companies are also hiring majorly and it is just an outcome of location change, skill requirement or the changing DNA of the organisation.
ALSO READ: Binny Bansal holds enough ownership threshold to retain Flipkart board seat
“This move is just an indication and outcome of any merger or acquisition happening in the industry, and the rationale is to get rid of the duplicity. This does not mean that exodus of e-commerce would start happening. However, there may be a rationalisation of manpower which will happen and since e-commerce companies are growing exponentially, a lot of inside opportunities must be available,” said Mayur Saraswat, head of digital, IT and telecom vertical, TeamLease Services.
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