One thing was quite clear at Ajio, the fashion e-commerce platform that’s (probably) the best of a bad portfolio for Reliance Retail: nobody’s job was safe. “It was not comforting,” said a former manager—a wonderful bit of understatement—after he left last November.

Curiously, there was little pressure to perform, as long as employees kept up appearances. “You just had to show you were busy, even if you weren’t delivering sales or profits.” 

Then came the layoffs. Two months before his departure, Ajio fell victim to a sweeping reshuffle at Reliance Retail, with 20–30% of its team let go, as the country’s largest retailer fell back into cost-cutting. The layoffs—38,000 jobs, or a 15% reduction in its workforce by fiscal year 2024—reflect growing pains for a group whose vast physical store network (18,000 strongFinancial ExpressReliance Retail’s Q-commerce foray may not be smooth sailing) still drives its profits, while its online ventures struggle to break even. More people have been let go since March, multiple people close to the company told The Ken. 

All the while, strategies have kept changing.

In February, Ajio tried a four-hour delivery service called “Ajio Priority” but later scaled it back. Meanwhile, its competitor Myntra, backed by retail giant Walmart, successfully rolled out M-Now, delivering fashion in 30 minutes, and turned a corner toward its first annual profitMoneycontrolMyntra turns profitable in FY24; Revenue up 15% at Rs 5,122 crore. In FY24, the company’s revenue came in at Rs 5,122 crore, growing 15% from the previous year, and clocked a profit of Rs 31 crore—a dramatic reversal from the Rs 782-crore loss in FY23.

For Ajio, each year brings new uncertainty. Senior management demanded profits, but fell short. Then, a much-touted push to improve customer experience fell flat. Jobs disappeared, not just due to the group’s layoffs but due to growing pressure and chaos within its ranks. 

“Earlier, there was a lot of hiring without much need. That’s a big expense, and we’re seeing the correction now,” said a senior manager.