Tata Digital Set for Major Restructuring; Significant Job Cuts Expected at Tata Neu

Tata Digital is preparing for a broad organisational restructuring that may result in substantial workforce reductions at its e-commerce platform, Tata Neu. People familiar with internal discussions indicated that headcount at Tata Neu could be reduced by more than half as the company consolidates roles and streamlines operations.
The development follows a strategic shift initiated by newly appointed CEO Sajith Sivanandan. The company is moving away from a large-scale growth model driven by gross merchandise value (GMV) towards a more focused approach prioritising operational efficiency and profitability. The latest overhaul comes after a period of leadership changes and evolving strategies since Tata Neu’s launch in April 2022.
Sivanandan, who assumed charge in September after leading digital services at Jio, is the third chief executive attempting to stabilise the business since Tata Digital was established in 2019. Under his leadership, Tata Digital has begun centralising digital marketing for major Tata brands, transforming the division into a group-wide consumer and marketing platform supporting companies such as Tata Motors, Titan, IHCL and Tata Consumer Products.
In parallel, separate evaluations are being carried out at BigBasket and Croma to refine business plans for each brand. BigBasket is strengthening BB Now, its express delivery business, which faces strong competition from quick-commerce firms including Blinkit, Zepto and Swiggy Instamart. Improvements in delivery speed, dark-store productivity and higher-margin categories are central to this effort.
Croma is also undergoing a strategic review and is consolidating operations by closing non-performing stores. The retailer is increasingly positioning itself as primarily an offline-led brand supported by online services, instead of competing directly with large e-commerce platforms.
Tata Digital’s revised priorities now focus on three core areas: financial services, marketing services and an integrated loyalty ecosystem. The company aims to unify customer rewards across Tata businesses and generate greater value from the group’s brand and consumer base.
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