As per media reports, Flipkart, owned by Walmart, is undergoing a workforce reduction that could lead to a five to seven per cent decrease in its total team. This is part of the company’s annual performance-based job cuts, a practice that has been in place for the past two years. The process is anticipated to conclude by March or April, aligning with ongoing performance evaluations and the conclusion of the current fiscal year.
The workforce reduction is in line with Flipkart’s aim to use resources more efficiently in both its current and new ventures. The company plans to address and conclude the restructuring plans and the 2024 roadmap at an upcoming meeting of senior executives scheduled for next month.
The report further added that the e-commerce company, which has 22,000 employees (excluding Myntra), has been actively controlling expenses by halting new hires in the last year.
Presently, the company is in the process of securing a $1 billion funding round from Walmart and other investors.
Despite reducing the workforce, Flipkart doesn’t seem to be changing its decision to delay its public offering until 2024. Initially, Flipkart had thought about going public in 2022–23 but chose to wait.
Previous reports suggested that Flipkart’s operating revenue has grown by 42 per cent to Rs 14,845 crore by the end of December in the financial year (FY23). Data from the business- intelligence platform, Tofler shows that Flipkart’s total loss went down by nine per cent to Rs 4,026 crore. Total expenses increased by 26 per cent to Rs 19,043 crore, with a significant amount spent on logistics, employee benefits and advertising.