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Reliance Group reduced its workforce by 42,052 employees in FY2024, with 38,000 job cuts in its retail arm.
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The company attributed the reduction to high employee turnover in the retail industry and a shift towards commission-based job roles.
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Despite growth in store footfalls and revenue, Reliance Retail saw slower growth in transactions in recent quarters.
Reliance Group, one of India’s largest business houses, has significantly reduced its workforce in its retail arm. According to its annual report, the company cut 38,000 jobs in Reliance Retail, bringing the total employee strength down to 207,552. The reduction is attributed to the high employee turnover rate in the retail industry and a shift towards commission-based job roles.
Despite the job cuts, Reliance Retail saw an 18.3% growth in operating revenue and a 21% increase in profit after tax. However, the company has experienced slower growth in transactions in recent quarters, despite an increase in store footfalls. This trend suggests that customers are visiting stores but not converting into sales.
The job cuts are part of Reliance Group’s efforts to restructure its businesses and optimize operations. The company has also reduced hiring in the last financial year, with 1.71 lakh new employees joining across its diverse businesses.
