Tata Digital is shifting its strategy from GMV-driven scale to group-level monetisation and integration
New CEO Sajith Sivanandan is planning over 50% job cuts at Tata Neu to streamline operations
The group is centralising digital marketing for subsidiaries like Titan and Tata Motors
Tata Digital is executing a large strategic overhaul under new chief executive Sajith Sivanandan that shifts the group away from a GMV-driven model toward tighter, group-level integration and monetisation. The change will include steep staff reductions at Tata Neu.
As per an ET report, Tata Neu’s consumer-facing arm may see more than 50% job cuts as the company streamlines operations and concentrates resources on higher-return initiatives.
31 October 2025
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Sivanandan, who took charge in September, is said to be centralising digital marketing mandates for several Tata companies, including Titan, IHCL, Tata Motors and Tata Consumer Products, aiming to make Tata Digital the conglomerate’s in-house digital and customer-funnel engine.
The move marks a deliberate pivot from pursuing scale via Gross Merchandise Value toward monetising the Tata ecosystem across finance, marketing services and a unified loyalty currency.
Operational Focus
As part of the reset, Tata Digital is conducting strategic reviews at BigBasket and Croma. At BigBasket the priority is sharpening BB Now, its express grocery arm, to better compete with fast-delivery rivals such as Blinkit, Zepto and Swiggy Instamart.
At Croma, the emphasis is on pruning underperforming stores and doubling down on an offline-first retail stance rather than attempting a scale race with Flipkart and Amazon.
Meanwhile, Tata Neu will be restructured heavily to reduce overhead and make its operations more sustainable.
Why Tata is Changing Course
The reset follows repeated strategic pivots and senior leadership churn since Neu’s launch in 2022, and comes after a year in which Tata Digital’s operating revenue fell and the business continued to report losses even as those losses narrowed.
Company insiders see the new strategy as a way to stabilise the platform, convert scale into profitable, group-wide services (financial products, marketing spend, loyalty) and protect the Tata brand’s economic value across subsidiaries.
A potential 50% reduction at Tata Neu will be closely watched by the industry and recruiters; the precise scale and timing of cuts were not disclosed and are subject to internal approvals. For suppliers, advertisers and partner merchants, the centralisation of marketing and a single loyalty engine could simplify relationships with the group but may also concentrate bargaining power and change commercial terms.
Sajith Sivanandan, previously president of Jio Mobile Digital Services and a former Google executive, became Tata Digital’s CEO in September 2025, his appointment is the latest in a series of leadership changes as the group seeks a stable and commercially viable direction for Tata Neu and related digital bets.
