Flipkart to Trim Workforce by 5-7% in Annual Performance Review
Flipkart, the e-commerce giant backed by Walmart, is planning a workforce reduction of 5-7% as part of its annual performance review process, scheduled for completion by March-April. This move follows similar performance-based job cuts in the previous two years and a freeze on fresh hiring over the past year to manage costs. Currently, Flipkart is in the process of finalizing a $1 billion financing round with Walmart and other investors.
With the exception of its fashion platform Myntra, Flipkart employs 22,000 individuals. The restructuring aims to optimize resource allocation across existing and new businesses. Details of the restructuring and the 2024 roadmap will be discussed and confirmed during an upcoming meeting of senior executives next month. Despite the workforce reduction, Flipkart has no plans to reconsider its decision to delay its public offering until 2024.
This restructuring aligns with the broader trend in the Indian tech industry, where several companies are realigning their teams after significant hiring in 2021, driven by increased demand for technology services during the pandemic. Paytm, Amazon, Meesho, and others have also initiated job cuts and business restructuring.
Flipkart's restructuring coincides with a reassessment of its existing and new business lines. Cleartrip, in which the Adani Group holds a 20% stake, has achieved a gross merchandise value (GMV) of approximately $1.5-1.7 billion. Flipkart plans to further invest in its hotels business as the travel portal expands its services beyond airline bookings to include hotels and other travel-related offerings. This internal restructuring process has been underway for several months, as Flipkart looks to manage expenses effectively.