IPO Bound Flipkart to Layoff 400–500 Employees Following Performance Review

E-commerce company Flipkart has laid off around 400–500 employees following its annual performance review process, as per The Economic Times Reports.  

The job cuts account for roughly 3–4% of the company’s workforce and have impacted employees across departments including operations, engineering and marketing. 

Performance Review Drives Job Cuts 

Flipkart conducts yearly performance assessments in which underperforming employees may be placed on a performance improvement plan (PIP) or asked to leave the organisation. 

According to reports, the number of employees impacted this year is higher than usual. Historically, the company has let go of about 1–2% of its workforce through similar evaluations. 

“More than the usual number of employees have been put on a performance improvement plan (PIP) this year. Many received a one-star rating in their annual review and were asked to leave,” reported by Economic Times. 

“Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organisation. We are supporting affected employees with transition support.” The company currently employs around 18,000–20,000 people. 

Restructuring Ahead of Potential IPO 

The performance-linked layoffs come at a time when Flipkart is preparing for a possible public listing, which could take place within the next year. 

As part of organisational restructuring, the company has also reduced the number of senior vice presidents in recent months, bringing the count to fewer than a dozen from around 18 in 2024. 

Flipkart is also in the process of shifting its headquarters from Singapore back to India to facilitate the proposed listing. The move received approval from the National Company Law Tribunal in December. 

Meanwhile, the Walmart-owned company continues to expand its business lines. In August 2024, it launched quick commerce service Flipkart Minutes, which is currently being scaled up. 

Read More: IPO Bound Flipkart Eyes Food Delivery: Eternal and Swiggy Share Price Fall up to 3%! 

Conclusion 

Despite the workforce reduction, Flipkart has continued to grow its core marketplace business. In FY25, Flipkart Internet reported revenue of ₹20,493 crore, a 14% year-on-year increase, while net losses declined 37% to ₹1,494 crore. 

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