Flipkart implements performance-based job cuts 5-7% workforce to be affectedFlipkart implements performance-based job cuts 5-7% workforce to be affected

Flipkart is making improvements to help things function more smoothly. They want to simplify their resources and how they operate to be more efficient, which might entail a 5-7 percent smaller staff.

Flipkart, one of India’s largest e-commerce companies, is changing its business model. They want to cut their staff size by 5-7 percent dependent on how effectively individuals perform in their positions. They want to complete this procedure in March or April as part of their attempts to simplify how they function.

Except for Myntra, the firm now employs roughly 22,000 people. They’ve made similar job cutbacks in the last two years, deciding who remains and who leaves based on performance reports. Furthermore, they have avoided employing new employees for the last year in order to keep expenditures under control.

Flipkart, on the other hand, is not just reducing back. They’re also preparing for a $1 billion investment round from Walmart and other investors. They want to utilise this capital infusion to drive their growth and optimise their present company operations, as well as to assist any new projects they have in the works.

Top officials from the firm will meet shortly to debate these changes and decide Flipkart’s path in 2024. It all comes down to making the most use of their resources and preparing for the future.

Flipkart Future Plans

Despite significant improvements, Flipkart has opted to postpone going public until 2024, according to sources. They had planned to launch their IPO sooner, around 2022-23, but those plans have been put on hold for the time being.

Throughout this, Flipkart has been making steps to broaden its horizons. Their recent purchase of Cleartrip, which is partially owned by the Adani Group, has performed well, with a gross merchandise value (GMV) of around $1.5-1.7 billion. They’re not stopping there; they want to invest more money in their hotel company and expand Cleartrip beyond merely booking flights.

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According to sources close to the firm, Flipkart has been working hard behind the scenes for quite some time. These modifications are intended to establish Flipkart’s present status and future orientation. While they are receiving a large sum of money from Walmart as part of a $1 billion fundraising round, the executives are also searching for ways to decrease expenses across the board. It’s all about striking a balance between expansion and cost control.

Industry-Wide Team Rationalisation

Indian tech companies made a lot of money and had a busy year in 2021 because more people needed their services during the pandemic. They are now making some changes to their teams. According to experts, this trend of reorganising teams could continue for other Indian companies that have gotten funding all the way through 2024.

People who work in the company say that Flipkart is changing because of the ups and downs in the e-commerce business in 2023. After reviewing their teams once a year, they are making changes to make things work better and make better use of their resources. Not just Flipkart is doing this; it looks like a lot of e-commerce companies are doing the same thing to adapt to changes in the business.

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