Reliance Retail Ventures, led by Mukesh Ambani and his daughter Isha Ambani, has initiated a significant workforce restructuring as part of its broader strategy to enhance operational efficiency and prepare for its highly anticipated Initial Public Offering (IPO). The move comes amid a sharp decline in the company’s valuation, which has dropped to $50 billion from its earlier target of $125 billion.
The restructuring process focuses on reducing redundancies and optimizing resources across various business units. Corporate roles are primarily affected, while critical retail operations and frontline staff remain largely untouched to ensure business continuity. Additionally, all hiring decisions for employees above a certain salary grade now require approval from the chairman’s office, reflecting tighter control over recruitment costs.
Reliance Retail, India’s largest retail company, has faced challenges such as slowing sales and increased competition. The restructuring aims to address these issues by streamlining operations, cutting costs, and showcasing stronger financial health to attract investors. The company is also reviewing global brand partnerships and limiting physical store expansion to focus on profitability.
Despite the challenges, Reliance Retail reported robust financial performance for the 2023-24 fiscal year, with revenue of ₹2.73 lakh crore and a net profit of ₹11,100 crore. The company serves a customer base of 34 crore across over 19,100 stores and multiple online platforms.
As Reliance Retail gears up for its IPO, the restructuring efforts are expected to position the company as a leaner, more agile market leader, ready to navigate the evolving retail landscape and regain investor confidence.
