Ajio, a division of Reliance Retail, is facing severe competition, profit difficulties, and mass layoffs as its online fashion aspirations encounter difficulties.

At Reliance Retail's fashion e-commerce platform, Ajio, which is the best of a dismal portfolio, one thing was quite evident: no one's job was secure. After he departed in November, a former manager observed, in a great example of understatement, that it was not comforting.

Curiously, he said, as long as workers maintained appearances, there was little compulsion to perform. Even if you weren't making sales or profits, you still needed to demonstrate that you were working.

The layoffs followed. Twenty to thirty percent of Ajio's staff was laid off in a massive reorganization at Reliance Retail two months prior to his departure, as the biggest retailer in the nation resorted to cost-cutting measures. For a company whose extensive network of physical stores—18,000 strong—continues to fuel its earnings while its online endeavors barely break even, the layoffs—38,000 jobs or a 15% drop in its staff by fiscal year 2024—reflect growing pains. According to many people connected to the firm, more staff has been let off since March, The Ken said.

Meanwhile, tactics have continued to evolve. Ajio tested "Ajio Priority," a four-hour delivery service, in February but later reduced its scope. With the support of retail behemoth Walmart, its rival Myntra successfully launched M-Now, which delivers clothing in 30 minutes, and made progress toward its first yearly profit. The firm made a profit of Rs 31 crore in FY24, a sharp turnaround from the Rs 782-crore loss in FY23, and its sales of Rs 5,122 crore increased by 15% from the year before.

Every year is a new source of uncertainty for Ajio. Senior management failed to meet their profit demands. A much-heralded attempt to enhance the consumer experience then failed. Jobs vanished as a result of the group's internal disarray and mounting pressure in addition to the layoffs.

According to a senior management, there was a lot of hiring that wasn't really necessary in the past. They are now witnessing the correction, and that is a significant expenditure.