Headhunters point out that the probable merger of Myntra, Flipkart and Jabong may lead to duplication in many roles
Source: economictimes.indiatimes.com | Nov 16, 2018 07:27 PM IST
Two days into the exit of group CEO and chairman Binny Bansal, at least 20 senior executives at Walmart-acquired Flipkart have reached out to headhunters to explore job opportunities, five leading recruitment companies told ET.
With the buzz around a probable merger of Jabong and Myntra with Flipkart doing the rounds, more senior executives are likely to look out, and many of them may find their way into other e-commerce firms, headhunters said.
“Integration has been long due for Flipkart. Also, with the change in management in any firm, there is bound to be movement, especially outbound, leading to more resignations,” said Sunil Goel, MD at Delhi-headquartered search firm Global Hunt, which has received at least 10 resumes from senior executives at Flipkart over the last couple of days.
Bengaluru-based The Head Hunters India confirmed at least half a dozen early conversations with Flipkart executives in the past two days. It expects the trend to pick up pace.
“There have been indications that Flipkart, Myntra and Jabong may merge and with this, we anticipate exits as there would be a duplication of profiles,” said Kris Lakshmikanth, CEO at The Head Hunters. “Also, we may see the exit of Ananth (Narayan, CEO at Myntra-Jabong) that may further trigger more exits,” he said.
Headhunters point out that the probable merger of Myntra, Flipkart and Jabong may lead to duplication in many roles. “One of the key functions to be impacted is likely to be the buy and purchase team that would surely lead to duplication and hence exits,” an executive of a Bengalurubased search firm said on condition of anonymity. “Similar redundancies would take place across other functions too.”
So where will they go? Headhunters said senior exits at Flipkart may only help other e-commerce firms, especially the ones hiring at the moment such as OYO and Swiggy. “Many e-commerce companies are on the lookout for premium talent in case available,” said Pankaj Bansal, CEO at HR solutions firm PeopleStrong.
James Agrawal, managing director at Bengaluru-based recruitment firm BTI Consultants, said it is in conversations with a few Flipkart senior executives who are drawing fixed component of close to ?1 crore a year, “topped with at least 25% variables”.
Mumbai-based leadership talent search firm Hunt Partners also said it has been busy engaging executives from Flipkart looking for options. Some headhunters think some of the big exits would hurt Flipkart. “Binny will be missed for driving the business by Walmart,” Bansal of PeopleStrong said. “Though the organisation has matured, it will still require entrepreneurial rigour to compete with the Amazons of the world,” he said.
Korn Ferry India, a global leading executive search firm, however, does not consider it a big issue. “Flipkart is matured enough as a company, and Walmart or the big boys of retail are in full command,” its India chairman Navnit Singh said. He said there is no exodus from Flipkart. “People are always looking out, especially in the ecommerce space.”
Uday Chawla, managing partner at Transearch India, said it’s only a matter of time before the exit of senior executives stopped.
“With every change in leadership at successful companies, exits follow,” he said. Flipkart is one of the most valuable unicorns in the country, employing over 30,000 people.
In May, US retailer Walmart bought 77% stake in Flipkart for $16 billion, valuing the country’s largest e-commerce company at $22 billion, in its biggest acquisition globally. Walmart also has a right to invest another $3 billion in the company at the same valuation within a year of completing the deal, as ET had reported earlier.