ISN Exclusive: Tata Digital cuts 250 jobs to improve efficiencies

The Tata group’s digital ecommerce arm, Tata Digital, has undertaken a cost reduction move.

The Mumbai-based company has let go of 200-250 employees in order to trim costs, impacted workers and other people privy to confidential information have told IndianStartupNews (ISN). 

This move brings its total headcount to around 1,000 employees now, sharply lower from earlier as Tata Digital looks to find its footing in the ecommerce race against Flipkart, Amazon, Reliance, Blinkit, Zepto and Swiggy Instamart. 

The decision was taken by new chief executive Sajith Sivanandan who joined from Jio and Google around six months back. 

To be fair, Sivanandan had warned of job cuts impacting as much as 50% of the employees if they fail to meet goals and targets. The actual number of impacted employees could be even higher than 250 sources warned ISN. 

Tata Digital chose not to reply to ISN’s queries. 

This comes at a time when Natarajan Chandrasekaran's re-appointment for a third term as Chairman of Tata Sons has been deferred. 

One of the key requirements is for him to turnaround operations of loss-making units like Tata Digital and Air India before a final decision on his extension can be taken. 
Tata Digital operates a superapp through which it runs Tata 1mg Technologies, BigBasket, the Neu card and several other units.