Flipkart plans to fire nearly 1,500 employees
Flipkart, the e-commerce giant owned by Walmart, is reportedly set to reduce its workforce by 5% to 7%. This is likely to impact approximately 1,500 employees. The process has already begun with performance reviews and is expected to be completed by March-April 2024, as per various media reports. This decision comes as Flipkart aims to optimize resources and maintain profitability.
Annual job cuts and hiring freeze
For the past two years, Flipkart has conducted annual job cuts based on performance reviews. Additionally, the company has implemented a hiring freeze for the past year to cut costs. A source told the Economic Times that "this has become an annual practice now. As part of the appraisal cycle, they (Flipkart) are restructuring teams."
Restructuring and roadmap for 2024
In February, senior executives will meet to discuss restructuring plans and the 2024 roadmap for better resource utilization across existing and new businesses. The e-commerce industry, including Flipkart, faced ups and downs in 2023, leading to these corrections being made now. This follows several IT companies and start-ups resorting to layoffs after a hiring overdrive in 2021 due to a prolonged funding winter.
