In the last leg of the restructuring process, Walmart-owned fashion retailer Myntra has announced plans to create a unified workforce by bringing all of Jabong's employees into its fold.

Sources in the know said that starting Tuesday, Jabong's employees will move to Myntra's payroll for all practical purpose though Jabong as an e-commerce platform will continue to operate for now. The company had a townhall meeting where the development was announced by Amar Nagaram, head of Myntra.

Jabong had around 400 employees in 2018, of which 180 people were laid off last year and 100 were absorbed by Myntra. The remaining 120 employees, the majority of whom are located in the company's Gurugram office, will now be part of Myntra. These employees, who will continue to operate out of Gurugram, will now be assisting both the platforms and any other newer services the fashion retailer would be launching in the future, the person added. After this exercise, Myntra will have a workforce of around 2,200.

"There are no layoffs. Jabong employees would continue to work out of Gurugram and they don't have to change the location nor would there be any impact on their salaries or designation," said a source from the company.

"We are moving all Jabong employees to Myntra to create a unified workforce, which can work across all our existing and new businesses," said the Myntra spokesperson in response to a query from Business Standard. "This will enable greater coordination between teams and provide them with an opportunity to take on key roles and responsibilities at Myntra."

Myntra also said that no jobs would be affected as part of this move. By better aligning its resources with its long-term plans, Myntra is looking at putting in a robust structure to effectively serve its sellers and brand partners and ultimately benefit the customers.

Jabong, which was co-founded by four professionals, including IIM-Calcutta alumnus Praveen Sinha and Manu Kumar Jain in 2012, was acquired by Flipkart in July 2016 for around $70 million. The acquisition was done through Myntra, a fashion portal which was also acquired by Flipkart in 2014 for around $370 million. The acquisitions helped Flipkart to compete with its bigger rival Amazon, which entered the Indian market in 2013.

The process for the merger of Jabong with Myntra started last year after Flipkart group announced a new reporting structure following the exit of co-founder and group chief executive officer (CEO) Binny Bansal. In January this year, the then CEO of Myntra Jabong Ananth Narayanan stepped down to pursue other opportunities, following which Flipkart veteran Amar Nagaram was given the charge of the fashion arm.

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