Flipkart is executing performance-based job cuts that will reduce its team strength by 5-7%, as per Times of India reports. The trimming exercise, tied to annual reviews, will conclude by March-April 2024.
Currently employing 22,000 people excluding Myntra, the Walmart-owned e-commerce major is entering a restructuring phase to optimize resources and operations. This is not the first occurrence of role rationalization at Flipkart – similar annual exercises have happened over the past two years as well.
Moreover, Flipkart has refrained from new hires over the last 12 months as part of its cost control tactics. The company is also in the process of securing $1 billion in fresh capital from investors like Walmart.
Flipkart Firing & Strategic Business Expansion Plans
While rightsizing its team, Flipkart continues to defer its IPO plans until at least 2024. It expects its recent Cleartrip acquisition and other strategic ventures to each achieve a GMV of $1.5-1.7 billion. The firm is keen to make further investments in the hotels category via Cleartrip.
Company insiders state that the leadership has spent months working on internal synergies. The restructuring allows Flipkart to re-evaluate short and long-term plans. As part of raising $600 million capital from Walmart, it is finding avenues to rationalize expenses across segments.
Flipkart Firing: Industry-wide Team Corrections
Several leading internet companies in India are now optimizing teams after rampant growth during the pandemic demand surge in 2021. Industry experts predict more such rationalization actions from other well-funded startups across 2024.
For Flipkart, the current restructuring echoes the turbulent 2023 journey of India’s e-commerce sector – thus warranting essential corrections. Its annual evaluation cycle drives role adjustments to boost operational efficiency using existing resources. The whole industry is responding to the changing e-commerce landscape dynamics via such recalibration.
