E-commerce major Flipkart is reportedly letting go of around 1,000 employees, representing nearly 5% of its workforce, as part of annual restructuring. This comes even as the firm avoided large-scale job cuts in 2023 amid a funding slowdown, unlike peers in global tech.
Last year, Flipkart had implemented cost control measures like withholding salary hikes for the top 30% earners including senior management, and instituting a hiring freeze instead of mass layoffs.
Performance-linked Exits Common Practice
While the company is yet to officially confirm the numbers, annual performance-based workforce right-sizing has been a regular practice at Flipkart. But broader industry trends have shaped decisions more sharply this year.
Flipkart’s total employee base currently stands at about 22,000, excluding fashion portal Myntra which it owns. As per Krishna Raghavan, Chief People Officer, Flipkart avoids reactionary over-hiring and layoffs to ensure responsible and balanced growth.
A rejig at Myntra last year resulted in nearly 50 role exits. But Flipkart headquarters steered clear of large cuts through hiring control and cost optimizations, despite economic struggles. The latest round of employee exits seemingly continues that focused approach.
