Mukesh Ambani, Isha Ambani firm sacks 1000 workers after spending Rs 2850 crore, here's what happened

Jiomart, Mukesh Ambani's wholesale online platform, has laid off 1000 employees days after it acquired Metro Cash and Carry.

This is just the beginning of the drive which will see nearly two-third of the company's 15000 workforce reduced. The layoffs include nearly 500 corporate employees.

It has put hundreds of employees on a 'performance improvement plan' as it plans a larger round of layoffs, reported ET.

According to the paper, the rest of the employees' salaries had been lowered. They have been put on a variable pay structure. 

The company attempts to replace distributors for grocery stories.

The decision has reportedly been taken as Metro's permanent workforce of 3500 employees will result in overlap of several roles. 

The company is also focussing on improving profit margins. 

It is looking to shut around 75 local centres which supply groceries to these stores. 

Metro AG, a Germany company, sold its 31 stores to Isha Ambani-led Reliance Retail for Rs 2850 crore. 

Reliance Retail, the parent company of JioMart, reported Rs 2,415 crore profit in the fourth quarter of 2022-2023.