Walmart is overhauling Jet.com, the ecommerce company that it acquired in 2016.
The Bentonville retail giant is absorbing multiple Jet.com teams into its own online business. The retail, technology, marketing, analytics and product teams will be integrated into Walmart’s ecommerce division.
This week, Marc Lore, president and CEO of Walmart eCommerce, announced that will be merging Jet.com teams. As part of the transition, Jet president Simon Belsham will be stepping down from his position. He is expected to remain on at Jet through early August to oversee the transition period.
“Bringing together talent from Jet and Walmart into joint teams has created more opportunity for our business and our people,” Lore wrote in a blog post. “We’re now merging the rest of our Jet teams, including Retail, Marketing, Technology, Analytics, Product and several others within Walmart.”
According to Reuters, the overhaul has the effect of reducing the importance of Jet.com in Walmart’s e-commerce strategy. The move comes after Jet.com failed to meet Walmart’s expectations for online shopping, according to Reuters’ sources.
Kieran Shanahan will be responsible for Jet’s strategy and management moving forward. According to Lore’s blog post, Jet will continue to serve as a channel to reach urban areas where Walmart has a limited presence. Thus far, New York has been Jet’s primary focus.