After Binny Bansal opted to step out as the CEO of Flipkart, a lot of hustle bustle has been going in the company to streamline things. Apparently, Myntra and Jabong has been merged and both the businesses are now under the new group CEO Kalyan Krishnamurthy. As a result of this restructuring, close to 150 employees from Myntra and Jabong have been laid off.
Myntra’s chief executive, Ananth Narayanan will continue to lead the team otherwise.
The Merger
Myntra and Jabong started aligning their key business functions since 2016 when Jabong was acquired. As the next step, Myntra and Jabong will now fully integrate all the remaining functions like revenue, finance, creative teams, technology, and marketing.
Jabong as a brand will be retained and even the Jabong site will remain live, it will though now be redirected to Myntra.
Binny Bansal’s Exit
Flipkart co-founder and group CEO Binny Bansal had announced his resignation after a “serious personal misconduct” charge. Binny had maintained that he was innocent, while reports later filtered out saying that his resignation had to do with a sexual misconduct charge by a former Flipkart employee, accusations for which had been made a few years prior. Binny hadn’t disclosed the charge when Walmart had acquired Flipkart, but the woman had later written directly to Walmart’s global CEO, prompting the company to launch its own investigation. Walmart reportedly took a serious view of the charges and wanted Bansal to step down.
The Walmart Way
Since Walmart acquired 77% stakes in Flipkart, the company has gone through a lot of structural changes. Binny Bansal stepped in as CEO when Sachin Bansal chose to quit and then just in a few years, we now see both the founders of Flipkart no longer in the system and it clearly shows that Walmart wants to run things in its own ways.
