E-commerce main Flipkart is implementing performance-based job cuts which is able to lower group dimension by 5-7 %, Occasions of India reported quoting sources. The cuts shall be based mostly on annual performace evaluations and shall be accomplished by March-April.
A significant participant within the Indian e-commerce {industry}, the Walmart-owned firm is ready to bear a restructuring section to optimize its sources and operations. The corporate, excluding its vogue portal Myntra, presently sustains a workforce of twenty-two,000 people.
This isn’t the primary occasion of Flipkart implementing performance-based job cuts. The report added that comparable workouts have been in observe over the past two years.
Moreover, as a part of cost-control measures, Flipkart has shunned recent hiring up to now yr. The corporate is finalizing a $1 billion financing spherical, together with contributions from Walmart and different buyers.
Sources instructed the paper that Flipkart is gearing as much as improve the utilisation of its sources throughout current and new enterprise ventures. Discussions and choices concerning the restructuring plans and the 2024 roadmap are slated for a gathering involving senior executives within the coming month.
Future Plans
Regardless of the continued restructuring, Flipkart maintains its determination to defer its preliminary public providing till 2024, the sources mentioned. Earlier plans for an IPO in 2022-23 have been briefly halted.
Flipkart’s strategic ventures, together with its current acquisition of Cleartrip, part-owned by the Adani Group, have achieved a gross merchandise worth (GMV) of roughly $1.5-1.7 billion. The corporate is eyeing additional investments in its resort enterprise, increasing Cleartrip’s providers past airline bookings.
Sources near the corporate affirm that Flipkart has been diligently engaged on inner synergies for a number of months. The restructuring aligns with the corporate’s intention to reassess its present and future enterprise trajectories. They added that whereas securing $600 million in recent capital from mum or dad firm Walmart as a part of the continued $1 billion spherical, Flipkart’s senior administration is actively looking for methods to cut back bills throughout completely different classes.
Trade-Extensive Crew Rationalisation
Varied main Indian web corporations, buoyed by excessive demand for expertise providers through the pandemic-induced surge in 2021, at the moment are rationalising their groups. Trade consultants foresee comparable actions from different venture-funded Indian organizations all through 2024.
Flipkart’s restructuring section mirrors the e-commerce {industry}’s highs and lows in 2023, prompting vital corrections, insiders instructed the paper. The annual appraisal cycle at Flipkart drives these group restructuring efforts, aimed toward optimizing operations and sources. The industry-wide changes are a response to the altering dynamics within the e-commerce sector.
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Printed: 08 Jan 2024, 09:33 AM IST
