In a move to optimize resources and navigate market challenges, Flipkart, the Walmart-owned ecommerce giant, is set to reduce its workforce by 5 to 7 percent, affecting approximately 1,500 employees. The decision comes amidst a series of performance reviews already underway and is expected to be finalized by March-April 2024.
As of now, Flipkart boasts a workforce of 22,000 employees, excluding those working for its fashion portal, Myntra. The internal restructuring is not merely a cost-cutting measure but a strategic realignment to enhance operational efficiency and maintain profitability.
Annual job cuts based on performance reviews have become routine for Flipkart over the past two years. The company has adopted a conservative approach by freezing hiring and refraining from onboarding new talent in the last year to control costs, according to sources familiar with the matter.
“This has become an annual practice now. As part of the appraisal cycle, they (Flipkart) are restructuring teams. Overall business in 2023 had its ups and downs for the ecommerce industry, including Flipkart. So, corrections are being done now,” a source stated, as reported by Economic Times.
In addition to the workforce reduction, Flipkart is contemplating an internal rejig to optimize resources across its existing and new businesses. The company is set to discuss both the restructuring plan and the roadmap for 2024 during a meeting of senior executives scheduled for February.
The ecommerce industry has witnessed a trend of layoffs as several IT companies and startups adjust their workforce in response to market dynamics. Companies like Paytm, which has laid off over 1,000 employees, and Meesho, citing business restructuring, reflect the broader trend of organizations aligning their manpower with evolving business needs amidst a prolonged funding winter.
