Myntra Lays Of 50 Employees Citing Restructuring

Flipkart-owned fashion ecommerce platform Myntra has started a restructuring exercise, which reportedly resulted in layoffs impacting around 50 employees. While the impacted roles will be across verticals, staff in the in-house brands vertical would be most affected.

According to an ET report, several employees have been briefed on the matter and an announcement might come on today (July 26) as part of a planned town hall. The changes are part of a new strategy at Myntra, which intends to focus on a few private labels instead of scaling its in-house brands in the apparel space.

Some of the brands in focus include Roadster, HRX and Mast and Harbour, which are among the highest-volume brands in terms of sales in Myntra’s kitty. Over the past few years, Myntra has launched more than 20 so-called ‘master brands’.

It is worth noting that the recent layoffs at Myntra occurred three months after the departure of Manohar Kamath from the fashion ecommerce company.

“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. 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,” a Myntra spokesperson confirmed the development, without clarifying additional details.

Under pressure from competitors such as Ajio, Nykaa and Tata CLiQ, Myntra has been trying to find a niche in India’s saturated fashion ecommerce market. In May, the Flipkart-owned platform launched FWD, a separate fashion experience portal designed for GenZ.

Myntra aims to attract 10 Mn GenZ users with its recent launch and expand its customer base over the next two years. As of 2022, Myntra already has a customer base of 8.6 Mn GenZ users. Additionally, Myntra is planning to increase the number of styles available on FWD to over 100,000 by the end of the year.

Similarly, in June, it launched a short video platform, ‘Myntra Minis’, to enhance user engagement and further improve the shopping experience for its customers.

Myntra has joined an ever-growing list of startups which have fired employees over the past 18 months. According to Inc42’s ‘Indian Startup Layoff Tracker’, more than 100 startups have fired over 28,000 employees since February 2022.

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