Ecommerce giant Flipkart is reportedly set to reduce its workforce by 5-7% as part of its performance-based job cut strategy.
According to the Times of India (TOI) report, The process, which aligns with the company's annual performance reviews, is expected to be completed by March-April. Currently, excluding its fashion portal Myntra, Flipkart employs over 22,000 individuals.
Is this the first round of layoffs?
This isn't the first instance of Flipkart implementing such measures. Over the past two years, the company has conducted similar exercises. As part of its cost-control measures, Flipkart has also refrained from fresh hiring in the past year.
Raising $1 billion
Amidst these changes, Flipkart is reportedly finalizing a $1 billion financing round, with participation from its parent Walmart and other investors. The company has also decided to defer its initial public offering (IPO) until 2024. Previously, an IPO was considered for 2022-23 but was postponed.
Flipkart is also focusing on expanding its ventures, particularly in the hotel business, following its acquisition of Cleartrip.
The move by Flipkart mirrors a broader trend in the Indian internet sector, where companies are rationalizing their teams in response to the changing market dynamics. The trend was particularly noted after the pandemic-induced surge in 2021. Other major firms like Paytm, Amazon, and Meesho have also undertaken job cuts and restructuring.
Flipkart's internal synergies
Flipkart has been working on internal synergies for several months. This includes merging key technology and product roles from its new businesses into the core commerce team to streamline operations. In 2023, Flipkart-owned Myntra also reduced its workforce to focus on its top private labels.
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