E-commerce giant, Flipkart, and food-delivery firm, Swiggy have announced major workforce reductions. Amidst the ongoing “funding winter” in the startup space, both the firms have announced job cuts as a part of their annual performance review process.
Swiggy is expected to trim approximately seven per cent of its staff, equating to roughly 350-400 employees. The layoffs will primarily take place in its technology teams and a segment of the customer-care department.
This marks Swiggy’s second round of layoffs, as the company had previously cut 380 jobs in January last year. The move is part of an operational-efficiency initiative in the Bengaluru-based firm, which currently employs around 6,000 people.
On the other hand, Flipkart is downsizing approximately five per cent of its workforce, totalling around 1,000 employees. The decision comes as the e-commerce giant prepares for an initial public offering (IPO), initially scheduled for this year but now expected in 2025-2026.
To prepare for the IPO, Flipkart is implementing several measures, including enhancing corporate governance, optimising key finance operations, and streamlining its workforce. A source familiar with the matter also revealed that the company has been regularly trimming its workforce as part of the strategy to make the organisation leaner and more efficient.
Currently, Flipkart employs about 22,000 employees.
In a recent townhall meeting,Kalyan Krishnamurthy, CEO, Flipkart, reassured employees about the company’s improving financial health. He acknowledged the possibility of an IPO delay, emphasising a valuation target of about $60 billion during the anticipated offering.
He also highlighted the company’s historic low in cash losses for January and outlined growth areas, including an increased focus on hotel properties, scaling up the grocery business, and a 50 per cent growth in the last six months.
