Flipkart plans to layoff 1,000 employees in annual restructuring

Walmart-owned Flipkart is preparing for a major restructuring, planning to lay off around 1,000 employees, nearly 5% of its workforce.

The Bengaluru-based company, with about 22,000 employees, is undergoing its annual restructuring initiative. Flipkart which has reportedly frozen hiring in the past year has been implementing these performance-based job reductions annually for the past two years.

Although the company did not disclose the total number, various measures were taken to optimize the workforce in response to economic challenges and industry trends.

Currently employing around 22,000 people, excluding Myntra employees, Flipkart has not officially responded to reports of layoffs. Annual performance-based layoffs are customary at Flipkart, but the company adopted a distinct approach in 2023.

Unlike some counterparts like Amazon, which faced substantial layoffs, Flipkart, guided by Chief People Officer Krishna Raghavan told to the Moneycontrol that responsible hiring practices and avoided mass layoffs. Raghavan underscored the company's avoidance of over-recruitment and extreme measures following large-scale hiring.

To control expenditures, Flipkart implemented a hiring freeze over the past year. While the main headquarters did not announce widespread layoffs, a restructuring move within a subsidiary fashion e-commerce company led to the departure of around 50 employees.

This strategic decision demonstrates Flipkart's commitment to maintaining workforce balance and adapting to economic conditions without resorting to extensive job cuts.