Mass resignation at Ecom Express. What’s Really Going On there ?

This has been a sudden twist in the sector of logistics in India, when almost 150 employees of Ecom Express are said to have resigned in the weeks prior to the proposed buying out of the company by Delhivery. These exits pooled most of the mid level managers and regional operations team as the company anticipates a wave of structural change in view of merger-induced consolidation.

According to sources, the resignation is largely voluntary and occurs in expectation of redundant duties being consolidated after the takeover is made official. It is interesting to note that alongside a number of other senior managers, Ecom Express CEO Ajay Chitkara will leave office after the acquisition is closed.

The deal worth 1,400 crores announced in April is awaiting regulatory approval by Competition Commission of India (CCI). This is likely to be approved in the coming month hence the ownership of its smaller competitor will be in full control of Delhivery.

The most recent resignations are an addition to a February 2025 round of layoffs during which Ecom Express laid off about 500 staff. Insiders claimed that the firm has been struggling with the pinch of tight finances and low volumes especially after a core customer Meesho made its own arrangements in terms of logistics.

The company, Delhivery, that has become profitable last year, is reportedly interested in cutting unnecessary expenses as well as simplifying logistical routes, billing clients, and delivering their purchases. Analysts indicate that the acquisition would allow Delhivery to enjoy better cost synergies, win a wide network, and consolidate itself in an industry that is bound to merge.

“Only those logistic companies, which are sure of their profitability, will do. Either they will close down or merge, others will,” said Delhivery CEO Sahil Barua earlier this year as he was able to frame the acquisition as a part of market correction.

According to industry experts the mass resigning is hyped as a normal restructuring exercise of a merger. A Mumbai based logistics analyst said, “This is not a crisis but it is no surprise when a large scale deal like this is acquired.

As the deal moves closer to closure, more exits are likely, while Delhivery is expected to onboard select Ecom Express talent through its internal upskilling initiative, Delhivery Academy. The integration process is expected to be completed by the end of 2025.

Don’t forget to bookmark Logistic Heroes.in  – India Shipping and supply chain News – Online News Web Portal