In a year that is expected to witness Flipkart go public with its IPO, the Walmart-owned company has made a major decision.?
Flipkart has begun layoffs that could see its total team size decrease by 5-7%, according to people in the know. This will be completed by March-April as part of performance reviews being conducted currently, they said, as per ET.
Amazon's rival Flipkart, which is India¡¯s largest e-commerce company, currently has 22,000 employees, excluding those in its fashion portal Myntra. So, about 7% of layoffs in Flipkart are expected to affect around 1,500 employees.?Flipkart-owned Myntra had earlier cut at least 50 jobs in July, as it wanted to focus on its top private labels.
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A person aware of the matter revealed the reason behind the layoff decision, saying "Better utilisation of resources is being planned¡ across businesses ¡ª existing and new.¡± The restructuring as well as the roadmap for 2024 will be discussed and crystallised at a gathering of senior executives due next month.
These layoffs in its IPO-bound year are not the first ones in recent times by the e-commerce giant. Flipkart has been implementing such performance-based job reductions annually for the past two years. It has also reportedly frozen fresh hiring in the past year to control costs.??
Also, in February last year, Flipkart's Chief People Officer Krishna Raghavan told Flipkart¡¯s top 30% executives that they wouldn't be handed out any appraisals as the e-commerce firm wanted ¡°prudent¡± management of resources. He had quit in October.
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Currently, Flipkart is closing a $1-billion financing from Walmart and others.?While $600 million in new capital has come into the company from parent Walmart, as part of the ongoing $1 billion round, the senior management is looking to reduce its burn in various categories.However, there are no plans to revisit its decision to go for IPO in 2024, said those in the know.
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