Flipkart is reportedly planning a performance-driven workforce reduction of 5-7% as part of a cost control strategy, according to The Economic Times. The initiative, expected to conclude by March-April 2024, follows a year of hiring freeze. Flipkart has been trimming jobs annually based on performance for the past two years.
The company's current workforce stands at 22,000, excluding Myntra. The layoffs could impact 1100-1500 employees. The restructuring, along with the 2024 roadmap, will be finalised at a senior executives meeting next month, the report suggests. Despite the cutbacks, the company's plan to delay its IPO until 2024 remains unchanged.
Other firms like Paytm, Amazon, and Meesho have also undertaken cost-cutting and restructuring recently. Flipkart is also considering collaborations with Cleartrip, where Adani Group owns a 20 per cent stake.
Cleartrip, which focuses on airline bookings, might see increased investment from Flipkart in its hotel business. The ongoing $1 billion funding from Walmart and others is anticipated to support Flipkart's strategic plans. The company, under the leadership of Group CEO Kalyan Krishnamurthy, is diversifying its offerings and aims to expand its user base by focusing on grocery, social commerce (Shopsy), and fintech (Super.money).
Also read: Walmart to infuse $600 mn into Flipkart as part of new fundraise