Tata Group will cut Tata Neu’s workforce by half as profitability increases

Tata Group will cut Tata Neu’s workforce by half as profitability increases

Launched in 2022, Tata Neu is likely to operate with fewer than 1,000 employees after the restructuring. The cuts come amid increased profit pressure in India’s e-commerce sector, with Amazon also recently announcing layoffs. | Photo credit:

The Tata group is looking to cut up to half the workforce in Tata Digital’s super app Tata Neu as part of its efforts to rationalize workforce and focus on profitability, sources said.

Tata Neu is part of the omnichannel platform Tata Digital and was launched in 2022 with the ambitious goal of becoming a super app offering all Tata Group products.

The decision to downsize its workforce was taken at a recent board meeting of Tata Digital, whose subsidiaries include electronics retailer Croma, BigBasket, 1mg and Tata Cliq.

Losses require a reset

Tata Digital, founded in 2020, has more than 39,000 employees, according to its latest annual report, and sources indicated that the number of job losses would not be large. It reported a turnover of ₹32,188 crore in FY25 and is a loss-making entity.

During the year, Tata Sons invested nearly ₹4,000 crore in it.

Tata Neu would have fewer than 1,000 people on the roll, sources indicate. They said the goal was to streamline workforces, reduce bloat and reduce labor costs.

Tata Digital did not respond to an email seeking clarification on the move.

The pressure on e-commerce is increasing

E-commerce companies in India are struggling to make profits, and currently the focus is on increasing sales, acquiring customers and increasing gross merchandise value.

Last month, global e-commerce giant Amazon said it would lay off around 800 to 1,000 employees in India as part of its global restructuring.

Published on November 20, 2025

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