Flipkart, a prominent e-commerce company owned by Walmart, is set to reduce its workforce by 5-7 per cent through performance-based job cuts, as reported by the Times of India citing sources.
The reductions will be determined by annual performance evaluations and are expected to be completed by March to April.
Apart from its fashion platform Myntra, the company has a workforce of 22,000 employees.
Previous Instances of Job Cuts at Flipkart
According to the ET report cited by TOI, Flipkart has earlier implemented performance-based job cuts, and this ongoing occurrence isn't the first one. The company has conducted similar exercises in the past two years. Additionally, in an effort to manage expenses, Flipkart has ceased new recruitments over the last year. Presently, the company is in the midst of closing a US dollar 1 billion financing round from Walmart and other investors.
Cost-cutting Trends
Recently, companies such as Paytm, Amazon, and Meesho have engaged in cost-cutting measures and restructuring. Flipkart is also planning collaborations with Cleartrip, a company where the Adani Group holds a 20 percent stake.
