Flipkart To Cut 5-7% Workforce Based On Performance
According to The Economic Times, which cited sources familiar with the situation, e-commerce giant Flipkart has launched a performance-based workforce reduction plan with the goal of reducing its total team size by 5-7 per cent. The procedure is expected to be done by March or April of this year.
Flipkart is grappling with the necessity for cost containment, having banned new hiring for the last year. For the past two years, the corporation has implemented annual, performance-based job cuts. According to a source quoted in the story, Flipkart, which now employs 22,000 people (minus Myntra), is seeking for better resource utilisation across existing and new business verticals.
The restructuring plan, as well as the 2024 roadmap, are scheduled to be debated and finalised at a meeting of senior executives next month. Despite the workforce changes, the company has no intentions to reconsider its decision to postpone its initial public offering (IPO) until 2024, according to the report.
The continuing $1 billion financing from Walmart and others will be critical in supporting Flipkart's strategic ambitions. Flipkart's concentration on grocery, social commerce (Shopsy), and ventures into fintech (Super.money) show the company's broader ambition to diversify products and increase total user base.
