Tata Digital plans 50% job cuts at its ecommerce platform

Tata Digital is preparing to cut over 50% of jobs at its ecommerce platform Tata Neu as part of a major strategy overhaul under new CEO Sajith Sivanandan, according to sources familiar with the plans.

Sivanandan, who joined Tata Digital in September after leading Jio Mobile Digital Services, is shifting the company’s focus from rapid growth to profitability and group-level integration.

Tata Digital has begun centralizing digital ad for group companies such as Titan, IHCL, Tata Motors, and Tata Consumer Products.

Tata Digital reported a 13.8% drop in FY25 operating revenue to 32,188 crore rupees (US$3.64 billion), while net losses narrowed to 828 crore rupees (US$93,6 million) from 1,201 crore rupees (US$136 million) in FY24.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Tata Neu numbers stay unclear after job cuts

Tata Digital’s standalone FY25 turnover was Rs 547 crore 1 2. The split between Tata Neu, BigBasket at Rs 9,866.7 crore and Croma at Rs 19,064 crore is unknown. That makes the 50 percent job cuts hard to judge.
BigBasket’s B2C losses rose 47 percent to Rs 1,851 crore on Rs 7,673 crore revenue at Rs 0.24 burned per rupee, worse than Tata 1mg’s Rs 1.12 cost ratio 2 3.
Tata Group says it will chase profits yet still put in Rs 4,000 crore in FY25 despite Rs 16,958.3 crore cumulative losses 4. The bet looks long term, not near term profit.
There is no baseline headcount, so a 50 percent cut at 500 versus 5,000 staff is not comparable.

Recruiters can move fast as Tata Neu plans cuts

Startups and tech firms can hire from Tata Neu’s ecommerce, advertising technology (adtech) and data engineering teams (BigBasket ad spend rose 51 percent to Rs 496.8 crore 5).
Quick commerce is ultra fast delivery of small orders. Blinkit handles 1.65 to 1.75 million orders versus BigBasket at 0.4 to 0.5 million as Zepto and Swiggy Instamart scale 2. That fuels demand for engineers who know 10 minute logistics and dark store operations (small warehouses optimized for fast online fulfillment).
Recruiters should track LinkedIn plus industry networks for senior product managers or growth leads skilled in Tata Group cross brand integration 2. Tata Digital tried to use Croma and Tata 1mg (the group’s e-pharmacy and diagnostics platform) as fulfillment hubs.