Myntra Cuts Jobs in Major Restructuring as Operations Consolidate to Bangalore

Fashion e-commerce giant Myntra announced workforce reductions on February 5, 2026, as part of a comprehensive restructuring plan that consolidates satellite operations in Gurugram with its Bangalore headquarters. The Flipkart-owned company has not disclosed exact numbers of affected employees, but sources indicate the layoffs are tied to operational consolidation efforts aimed at streamlining costs and improving efficiency in India's competitive online fashion market.

The workforce reduction comes as Myntra moves to centralize operations and eliminate redundancies across its geographic footprint. Industry sources suggest the company is responding to mounting pressure to achieve profitability while maintaining its market leadership position in India's fashion e-commerce sector.

Context of the Decision

Myntra's layoffs reflect broader challenges facing India's e-commerce industry, where companies are shifting from growth-at-all-costs strategies to sustainable profitability models. The consolidation of Gurugram operations into the Bangalore headquarters represents a strategic move to reduce operational complexity and overhead costs.

The fashion e-commerce sector has faced headwinds from changing consumer spending patterns and increased competition from both domestic players and international brands establishing direct-to-consumer channels. Myntra's parent company Flipkart has been under pressure from investors to demonstrate clear paths to profitability across all business units.

The relocation and consolidation strategy suggests Myntra is prioritizing operational efficiency over geographic distribution of workforce, a trend observed across multiple Indian tech companies in recent months. This approach allows for better coordination between teams while reducing real estate and administrative costs associated with maintaining multiple office locations.

Impact on Operations

The workforce reduction primarily affects employees in Myntra's Gurugram satellite office, with operations being consolidated into the company's established Bangalore headquarters. This geographic consolidation impacts various departments including technology, marketing, and business operations teams that were previously distributed across both locations.

Sources indicate that affected employees are being offered relocation packages to move to Bangalore, though specific details of these arrangements remain undisclosed. The company is maintaining its core functions while streamlining middle management layers and eliminating duplicate roles created during rapid expansion phases.

The operational consolidation is expected to improve decision-making speed and reduce coordination challenges that can arise from distributed teams. However, the move may also result in talent loss as some employees may be unable or unwilling to relocate to Bangalore.

Company Financial Background

Myntra has been working toward profitability as part of Flipkart's broader strategy to optimize unit economics across all verticals. The fashion platform has maintained its position as India's leading online fashion destination, but faces pressure to demonstrate sustainable growth metrics rather than pure revenue expansion.

Flipkart, acquired by Walmart in 2018 for $16 billion, has been pushing all subsidiaries to achieve operational efficiency and clear profitability timelines. Myntra's fashion-focused model has shown strong gross merchandise value growth, but the company has been investing heavily in private label development and supply chain infrastructure.

The layoffs come as the broader Indian e-commerce market matures, with investors demanding more disciplined capital allocation and sustainable business models. Myntra's move aligns with industry-wide trends toward operational optimization rather than aggressive expansion.

Industry Outlook

The fashion e-commerce sector in India continues to show long-term growth potential, driven by increasing internet penetration and changing consumer preferences. However, companies are now focusing on unit economics and sustainable growth rather than market share gains at any cost.

Similar consolidation moves have been observed across Indian tech companies, with firms like Swiggy, Byju's, and others implementing workforce reductions and operational streamlining initiatives. The trend reflects a broader maturation of India's startup ecosystem as companies transition from growth to profitability phases.

Competition in fashion e-commerce remains intense, with players like Ajio, Amazon Fashion, and Nykaa Fashion competing for market share. This competitive pressure necessitates operational efficiency to maintain margins while investing in customer acquisition and retention.

Conclusion

Myntra's workforce reduction and operational consolidation signal a strategic shift toward sustainable profitability while maintaining market leadership in India's fashion e-commerce space. The move reflects broader industry trends as companies prioritize operational efficiency and streamlined decision-making processes. While challenging for affected employees, the restructuring positions Myntra to compete more effectively in an increasingly mature and competitive market environment.