Flipkart unveils a performance-based job cut strategy, aiming to streamline its workforce by 5-7 per cent. Annual performance reviews will dictate the reductions, expected to conclude by March-April, marking a resurgence in tech layoffs.
While this isn’t Flipkart’s first venture into performance-based layoffs, the move aligns with its broader restructuring plans to refine operational efficiency. With 22,000 employees excluding Myntra, Flipkart aims to strategically manage resources amidst a temporary hiring freeze.
Simultaneously, the ecommerce giant navigates a USD 1 billion financing round, engaging Walmart and other investors. Reportedly ources reveal Flipkart’s intent to leverage internal synergies and assess its trajectory, emphasizing a reduction in expenses across categories.
Amidst these changes, Flipkart maintains a cautious approach, delaying its initial public offering until 2024. Company’s acquisitions, like Cleartrip, contribute to a gross merchandise value (GMV) of USD 1.5-1.7 billion. Flipkart plans to expand Cleartrip’s services, emphasising resilience and adaptability in the competitive market.
