Flipkart, the Indian e-commerce giant owned by Walmart, is reportedly planning to lay off a portion of its workforce following annual performance reviews. The decision comes as the company undergoes significant changes and upgrades on its platform, with automation playing a prominent role in its future operations.
According to reports, around 7% of Flipkart’s employees may be affected by the layoffs, which are expected to take place from March to April 2024. While the company’s Chief People Officer, Krishna Raghvan, denied the possibility of mass layoffs, he acknowledged that job cuts would be implemented based on performance metrics. Raghvan stated that Flipkart hires people strategically to avoid over-recruitment.
Flipkart’s restructuring plan is part of its effort to streamline operations across its current ventures and new ventures. While the company froze hiring last year, it did not officially announce any layoffs. However, its fashion e-commerce subsidiary reportedly cut 50 employees during a recent restructuring.
The news of potential layoffs at Flipkart follows a trend in the e-commerce industry, with global giant Amazon also implementing job cuts in various divisions. Reports suggest that automation and technology advancements in the industry could lead to further reductions in workforce across companies in the coming years.
Walmart acquired a 77% controlling stake in Flipkart for $16 billion in 2018, but the Indian e-commerce giant has continued to operate independently. The ongoing developments and adoption of automation are part of Flipkart’s efforts to stay competitive in the evolving e-commerce landscape.
As Flipkart prepares for discussions and finalizations of the layoffs with its senior executives next month, it remains to be seen how the restructuring plan will affect the company’s overall operations and its workforce in the long run.
In conclusion, Flipkart is reportedly planning to lay off a portion of its workforce following performance reviews. The move is part of the company’s restructuring plan, aimed at streamlining operations and adapting to technological advancements in the e-commerce industry. While the exact number of layoffs is uncertain, reports suggest that around 7% of employees could be affected. As Flipkart continues to evolve and embrace automation, it seeks to remain competitive in the ever-changing market.
