India’s second-largest fashion e-tailer after Flipkart Fashion, Myntra, is likely to cut jobs of about 50 employees in a restructuring move that will impact people across the organisation, according to news reports. 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.
According to a Myntra spokesperson, "In our endeavour to cater to the ever-evolving needs of our customers, new developments, and technology innovations, we recalibrate our business priorities and review our organisational structure from time to time."
Myntra's GMV grew by about 44 per cent from $25 billion in FY20 to $36 billion in FY21 which further increased by 36 per cent 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. "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 organisation as well as Group companies,” the spokesperson added.
According to the reports, there are 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 (ET) 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.
As reported by Moneycontrol, 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.