Flipkart to lay off 5-7% workforce, performance-based job cuts in March: Report
Flipkart is expected to lay off around 5-7 percent of its workforce amid restructuring and performance based job cuts, state reports.
E-commerce giant Flipkart is planning to cut around 5-7 per cent of jobs due to performance based reviews and restructuring withing the company, reported The Times of India. These job cuts are expected to take place during the annual appraisal cycle, in March-April 2024.
Flipkart is planning to undergo a major restructuring in an effort to optimise its resources and continue profits. Excluding its fashion website Myntra, Flipkart currently employees over 22,000 individuals.
This means that as much as 1,500 jobs in Flipkart could be cut during the layoffs in the next couple of months. The Walmart-owned company has been carrying out the same practice over the last two appraisal cycles, reported TOI.
To control costs and maintain profits, Flipkart has frozen fresh hiring in the company over the past year. The report said that the company is in the process of closing a $1 billion financing round from Walmart and other investors.
Flipkart is planning to better utilise its resources across old and new businesses, said sources. Thus, a meeting of senior executives will be held next month to discuss the restructuring plan for 2024, likely to take a final call on the layoffs.
Flipkart IPO in the works
While the company is planning restructuring projects to keep the ship afloat, the Walmart owned company has no plans to reconsider its decision to launch its initial public offering (IPO) in 2024, said sources quoted by TOI.
Earlier, Flipkart had considered launching its IPO in 2022-2023, but had to put those plans on hold due to the company's financial situation. However, Flipkart is looking to expand its business in other sectors, especially in hospitality and hotels, after the acquisition of Cleartrip.
Big IT firms and startups in India have been cutting jobs across multiple departments in order to cope with the current global economic slowdown. Paytm laid off 1000 employees recently, while Amazon and SoftBank-owned Meesho are also cutting jobs and restructuring departments.