The exit of Flipkart co-founder Binny Bansal seems to have created imbalance in the company. Today morning we learned that Myntra-Jabong CEO Ananth Narayanan and CFO Dipanjan Base have decided to resign.
Now, Jabong has decided to lay off a significant portion of its workforce in Gurgaon as a part of the company’s restructuring following the exit of Binny Bansal.
In a townhall meeting, Myntra and Jabong chief Ananth Narayanan told employees that letters pertaining to the layoffs will be given shortly. As per the sources, the company has shared a list of employees asked to leave with team heads and individual letters will be given soon.
Further, Myntra has said that all of Jabong’s functions will be integrated with the company. The development comes just days after Walmart put the two fashion business of Flipkart Group under the direct control of CEO Kalyan Krishnamurthy. In a statement, the company said:
Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance, and creative teams. The closer integration of Myntra and Jabong is a necessary step in our continuing development. To remain the leader in fashion eCommerce in India, we have to find ways to operate more effectively and innovate more quickly. By better aligning our resources with our long-term plans, we can put the best structure in place to serve our sellers and brand partners and ultimately benefit our customers.
The decision to merge both entities seems to have taken following a lack of growth in Jabong’s business during the last two quarters. According to the sources, Jabong is also likely to move base to Bengaluru from Gurgaon.
In a statement, Flipkart Group CEO Kalyan Krishnamurthy said:
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.
While the company has dismissed the reports related to Myntra CEO Ananth Narayanan leaving the company, a source aware of the development said to Moneycontrol that he has negotiated his exit and will remain with the company for another 3-6 months to complete the transition.