Strategic Reset at Tata Neu as Profit Takes Priority

Tata Digital is reportedly planning significant workforce reductions at its super-app platform, Tata Neu, as part of a major strategic overhaul led by new CEO Sajith Sivanandan. According to a report by The Economic Times, more than 50% of Tata Neu’s workforce may be impacted, marking the first major reset under Sivanandan’s leadership and the third restructuring since the company entered the ecommerce space.

Sivanandan, who previously served as President of Jio Mobile Digital Services at Reliance Jio, assumed the role of Tata Digital CEO in September 2025. He is the company’s third chief executive since 2019 and is now steering Tata Neu away from its earlier “do-everything” and GMV-centric growth approach toward a leaner, profitability-focused model.

Centralising Digital Mandates Across the Tata Group

As part of the new strategy, Tata Digital has begun consolidating digital marketing operations across multiple group companies, including Titan, Indian Hotels Company Limited, Tata Motors and Tata Consumer Products. This move aims to establish Tata Digital as the central digital marketing and customer-funnel hub for the conglomerate, streamlining expenditure and unifying customer acquisition strategies.

Strategic Reviews at BigBasket and Croma

Sivanandan has also initiated strategic assessments at BigBasket and Croma, collaborating directly with both businesses to refine execution and strengthen performance.

At BigBasket, immediate focus has shifted to BB Now, its express delivery arm, which competes with fast-growing Indian quick-commerce players such as Blinkit, Zepto and Swiggy Instamart. The quick-commerce landscape is increasingly driven by ultra-fast delivery timelines, micro-store efficiencies and expansion into high-margin product categories. In response, BigBasket is expected to ramp up BB Now while continuing to leverage its established grocery sourcing and supply-chain network.

Meanwhile, Croma is progressing with store consolidation, with plans to shut underperforming retail outlets and reaffirm itself as an offline-first retailer with a strong digital extension. The company is scaling back its ambition of directly matching enterprise-level ecommerce giants like Amazon and Flipkart in order to prioritise sustainable growth over market-share battles.

Future Priorities: Fintech, Marketing and Loyalty Integration

As per internal restructuring discussions referenced by The Economic Times, Tata Digital’s revised roadmap is expected to centre around three main verticals:

• Financial services enablement
• B2B and centralised marketing technology services
• A unified loyalty and rewards engine

This reorientation aims to better capitalize on the Tata brand’s ecosystem reach, centralize digital marketing expenditure effectively, and merge all loyalty Programmes into one consolidated rewards framework to boost retention and cross-platform monetization.

Organisational Instability and Financial Outlook

Tata Digital has faced ongoing operational turbulence since the launch of Tata Neu in April 2022, characterized by frequent strategy pivots and considerable leadership turnover. Sivanandan’s appointment followed the exit of former CEO Naveen Tahilyani, who had stepped in after Pratik Pal — a long-tenured leader from Tata Consultancy Services.

Despite these challenges, Tata Digital’s latest financial results indicate a partial improvement. For FY2025 (FY25), the company reported a 13.8% decline in operating revenue to ₹32,188 crore, while net losses narrowed to ₹828 crore, compared to ₹1,201 crore in FY2024 (FY24). The current leadership team now has the critical task of sustaining this momentum, sharpening unit economics, and rebuilding the super-app into a scalable and financially stable business.

The company has refrained from issuing an official statement regarding the restructuring plans.