Reports suggest that Tata Digital will focus on three key areas in the future: financial services, marketing services, and a unified loyalty engine.
Following major layoffs at the Tata Group, one of the country’s largest conglomerates, the headcount reduction process reportedly continues. While the news of TCS laying off 12,000 employees created panic among workers, reports now suggest that Tata Digital, the e-commerce and digital company of the Tata Group, is preparing to lay off a large number of employees from its super-app, Tata Neu. According to reports, the company is planning to reduce staff by more than 50 per cent. This decision is part of the company’s major restructuring drive under its new CEO, Sajith Sivanandan.
Tata Neu has not performed as expected over the past two years. While the company repeatedly changed its strategy and several top-level executives left, things failed to improve at the firm. However, Sivanandan has now made it clear that Tata Neu will no longer be solely focused on increasing sales. Instead, it will focus on profitability, i.e., increasing revenue and reducing unnecessary expenses.
To achieve this goal, the company is integrating all its digital verticals into one single platform. The move is expected to simplify operations, streamline processes, and reduce costs. However, it will have a significant impact on employees. This major restructuring will result in substantial layoffs.
BigBasket, Croma undergoing major restructuring
According to a report in The Economic Times, both BigBasket and Croma, under the Tata Digital umbrella, will undergo significant strategic changes. As part of this, BigBasket will be focusing 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 its attempts to compete with major companies like Amazon and Flipkart in the e-commerce race.
Company to focus on three core businesses
Reports suggest that Tata Digital will focus on three key areas in the future: financial services, marketing services, and a unified loyalty engine.
Meanwhile, Tata Digital’s revenue declined 13.8 per cent to Rs 32,188 crore in FY25. However, the company’s net loss narrowed from Rs 1,201 crore to Rs 828 crore.
