Major Job Cuts Expected at Tata Neu Under New CEO

Tata Digital, the digital arm of the Tata Group, is embarking on its most decisive strategic overhaul yet, leading to anticipated significant job reductions, potentially exceeding 50% of the workforce at its consumer e-commerce platform, Tata Neu.

The restructuring is being driven by new CEO Sajith Sivanandan and marks a critical shift away from the earlier, cash-intensive expansion model towards a focus on profitability and operational efficiency.

A Pivot from GMV to Profitability

The impending workforce reduction is a direct response to a strategy that, according to internal sources, led to a “bloated” organization and an overstretched business model that heavily prioritized Gross Merchandise Value (GMV) growth.

Sajith, who took charge in September 2025 as the company’s third CEO since the super app’s launch in April 2022, is dismantling the previous “do-everything” startup approach.

This pivot aims to unwind years of over-staffing and streamline operations to achieve financially sustainable growth.

The change comes amidst ongoing financial scrutiny.

For the fiscal year ending March 2025 (FY25), Tata Digital reported a 13.8% year-on-year decline in operating revenue to ₹32,188 crore.

While net losses narrowed to ₹828 crore from ₹1,201 crore in the previous fiscal year, the new leadership team is tasked with stabilizing the platform’s performance and demonstrating a clear path to profitability.

Tata Neu New Leadership’s Triple Focus Strategy

Sajith’s reset strategy narrows Tata Digital’s core focus to three structurally advantageous areas: financial services, marketing services, and a unified loyalty engine. 

This approach leverages the conglomerate’s vast ecosystem, aiming to better monetize the powerful Tata brand.

As part of this, Tata Digital has already begun centralizing the digital marketing mandates for group entities such as Titan, IHCL, Tata Motors, and Tata Consumer Products, positioning itself as the internal digital services backbone for the entire group.

Furthermore, efforts are underway to integrate all loyalty programmes into a single, interchangeable rewards currency to enhance customer stickiness.

Operational Streamlining Across the Ecosystem

Beyond the super app’s direct operations, the company is conducting strategic reviews of its other digital assets.

At BigBasket, the priority is sharpening the performance of its express grocery vertical, BB Now, to compete effectively against aggressive quick-commerce rivals like Blinkit and Zepto.

Meanwhile, electronics retailer Croma is shifting focus to consolidating its operations by closing unprofitable stores and reinforcing its position as an offline-first retailer with a supportive online presence.

The integrated approach seeks to improve execution and ensure that every vertical contributes meaningfully to the group’s digital ecosystem, a challenge that has persisted through multiple strategy and leadership changes since Tata Neu’s inception

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