Following the 12,000 layoffs at TCS, another Tata company is in turmoil, with 50% of its employees set to be furloughed!
The wave of layoffs at the Tata Group, one of the country’s largest corporate conglomerates, shows no signs of abating. While the news of 12,000 layoffs at TCS caused widespread panic, another major setback has now emerged. Tata Digital, the Tata Group’s e-commerce and digital company, is preparing to lay off a significant number of employees at its super-app, Tata Neu. According to reports, the company plans to reduce its staff by more than 50%. This decision is part of a major restructuring initiative under the leadership of the company’s new CEO, Sajith Sivanandan.
The Company’s New Strategy
Tata Neu was launched with great expectations, but the platform has failed to thrive over the past two years. The company has repeatedly changed its strategy, and several top-level executives have left. This has further complicated the platform. New CEO Sajith Sivanandan has taken the helm, and upon his arrival, he made it clear that Tata Neu will no longer be solely focused on increasing sales (GMV). The company will now focus solely on profitability, i.e., increasing revenue and reducing unnecessary expenses.
Toward this goal, the company is integrating all its digital verticals into one platform. This will simplify operations, streamline processes, and reduce costs. However, this will have a significant impact on employees. This major restructuring is expected to lead to significant layoffs. This means Tata Neu may significantly reduce its staff in the near future.
Major restructuring underway at BigBasket and Croma
According to a report in The Economic Times, BigBasket and Croma, both under Tata Digital, are also undergoing major strategic changes. BigBasket is now focused on strengthening its fast-delivery BB Now model to compete with companies like Blinkit, Zomato, and Swiggy Instamart. Meanwhile, Croma is closing loss-making stores to strengthen its offline presence and abandoning attempts to compete with major companies like Amazon and Flipkart in the e-commerce race.
The company’s focus is now on three core businesses.
Reports suggest that Tata Digital will focus on three key areas: financial services, marketing services, and a unified loyalty engine. Its goal is to better leverage the Tata Group’s brand value, centralize digital marketing, and create a unified rewards system for all Tata brands.
Revenues declined, losses also narrowed.
Tata Digital’s revenue declined 13.8% to ₹32,188 crore in FY25. However, the company’s net loss declined from ₹1,201 crore to ₹828 crore. The new management team now faces the challenge of improving its financial position and establishing a sustainable and scalable model for Tata Digital.
