Flipkart to trim workforce by 5-7% via performance-based cuts: Report
Flipkart plans to conduct the cuts based on annual performance reviews, with the process expected to be finalised by March-April.
Ecommerce giant Flipkart is reportedly cutting down its workforce, which could result in a 5-7% reduction in team size, a report said.
As per an Economic Times report, Flipkart plans to conduct these cuts based on annual performance reviews, with the process expected to be finalised by March-April. The company undertook similar exercises over the last two years.
To reign in costs, the Walmart-owned ecommerce company has abstained from hiring more employees in the previous year. The ecommerce firm has 22,000 employees, excluding those working at Myntra. The fashion commerce brand had laid off 50 employees in a similar cost-rationalisation exercise last year.
Queries sent to Flipkart remained unanswered at the time of publishing this story.
In an internal communication issued in March 2023, Flipkart declared that increments would not be extended to senior leadership positions, encompassing Grade 10 and above, including managers and vice presidents.
Citing a source, the report said plans are underway to enhance the efficient use of resources across existing and new business ventures. Flipkart's roadmap for 2024 is set to be deliberated and finalised during the scheduled meeting of senior executives next month.
In December 2023, Walmart invested close to $600 million in the ecommerce platform. As per media reports, this marked Walmart’s first direct investment in the company in 2023 after it bought investment firm Tiger Global Management’s stake in the company for $1.4 billion in July, increasing Walmart’s shareholding in the company to 80.49%.
The investment is reportedly part of a $1 billion investment into the Indian ecommerce major. The balance amount is likely to come in from other investors, including SoftBank.
Tencent is the second-largest shareholder in Flipkart with a 5.98% stake in the company, as of July 2023, according to the market research platform Tracxn. Flipkart was valued at nearly $38 billion during the transaction in July this year.
Edited by Suman Singh