India’s tech sector is reeling from back-to-back shocks. Just days after reports of 12,000 layoffs at TCS sent tremors across the industry, another Tata Group company is preparing for one of the biggest downsizing moves in its history.
According to multiple reports, Tata Digital—the parent company of e-commerce platforms BigBasket, Croma and the super-app Tata Neu—is gearing up to cut over 50% of its workforce. This drastic step is part of a major restructuring initiative launched by the new CEO, Sajith Sivanandan, who has been tasked with turning the struggling digital arm profitable.
Why Such a Massive Layoff? Inside the Tata Neu Troubles
Tata Neu was envisioned as India’s ultimate “super-app”, offering everything—from groceries and gadgets to travel and payments—under one digital roof.
●But in just two years, the dream began to unravel:
●App performance failed to match expectations
●Strategies changed repeatedly
●Top executives resigned one after another
●Financial losses kept piling up
The new CEO has now completely shifted direction.
Instead of chasing GMV and rapid expansion, Tata Digital will focus squarely on profitability, cost reduction, and operational discipline—starting with staff cuts.
BigBasket & Croma Also Face Major Overhaul
The restructuring isn’t limited to Tata Neu. Tata Digital’s key consumer platforms are also in transition:
BigBasket (BB Now)
Sharper focus on instant delivery
Competing directly with Blinkit, Swiggy Instamart and Zomato
Croma
Closing unprofitable stores
Strengthening the offline business
Reducing reliance on intense e-commerce battles
The group is tightening operations across all verticals.
Tata Digital’s New Game Plan
The company will now consolidate around three core pillars:
1. Financial Services
2. Marketing Services
3. Unified Loyalty Engine
This shift aims to:
●Boost profitability
●Maximize Tata brand value
●Integrate loyalty programs across all Tata businesses
●Reduce fragmented digital marketing costs
Financial Reality: Revenue Drops, Losses Narrow
In FY25:
Revenue fell 13.8% to ₹32,188 crore
Net loss reduced from ₹1,201 crore to ₹828 crore
A slimmer, more efficient organisation is now seen as essential to stabilising the business.
What’s Next for Tata Neu?
The big question remains:
Can Tata Neu transform into a profitable, long-term digital powerhouse?
With TCS layoffs and now Tata Digital’s restructuring, experts believe India’s IT and digital ecosystem is entering a massive correction phase—where growth-at-any-cost is out, and profitability is the new priority.
All eyes are now on Tata Group’s next move.
