Jabong to lay off almost 200 employees after Flipkart restructuring

While the Jabong site will continue to run, the website’s traffic will be redirected to Myntra, once the merger is completed. The merged Jabong-Myntra will be controlled by Flipkart

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After the announcement of the merger of Jabong and Myntra into Flipkart, now the Walmart-owned fashion company is set to carry out a massive layoff and integrate itself into Myntra. The merger has been announced following the resignation of Binny Bansal as the Flipkart CEO.

Currently, Jabong has around 600-700 employees and the majority of them are expected to be retained by the company and will be soon the employees of Myntra. Meanwhile, the merger is said to cost 150-200 employees their jobs. While the Jabong site will continue to run, the website’s traffic will be redirected to Myntra, once the merger is completed.

The Flipkart group is committed to the success of Myntra and growing the business, now more than ever. The Myntra team has been doing innovative work to grow the company and create India’s leading online platforms for fashion and lifestyle. We want to empower the Myntra team to continue to operate independently to achieve even greater success,” Krishnamurthy said in the statement.

Myntra has been growing fast but Jabong has been struggling to expand its sales this year. Therefore, the company was bought by Myntra from Rocket Internet for $70 million in order to avoid a rival buying it.

Thus, along with Myntra-Jabong, Flipkart is now expected to control 60-70 per cent of the online fashion sales in the country. The online portal’s dominance in fashion is one of the prominent reasons why Walmart agreed to pay $16 billion to buy a 77 per cent stake in May this year.

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