FlipkartThe Indian e-commerce giant owned by Walmart is having to take a step workforce reduction A practice that could lead to a 5-7% reduction in the size of its team, as confirmed by sources familiar with the matter. This deduction is part of the company’s annual deduction. performance reviews And it is expected to be completed by March-April.
According to an ET report, this is not the first time that Flipkart has implemented performance-based job cuts, The company has been doing similar exercises for the last two years. Additionally, in an effort to control costs, Flipkart has put a freeze on new hiring since last year. Currently, the company is in the process of closing a $1 billion financing round from Walmart and other investors.
Flipkart, excluding its fashion portal Myntra, currently employs 22,000 people. A source familiar with the matter said the company plans to better utilize its resources in both existing and new businesses. The restructuring plans and the roadmap to 2024 will be discussed and finalized in the meeting of senior officials to be held next month.

Despite the restructuring, Flipkart has no plans to reconsider its decision to postpone its public offering to 2024, according to sources. In 2022-23, Flipkart had considered launching an initial public offering (IPO), but those plans have been put on hold for now.
An email sent by the Financial Daily to Flipkart regarding this matter did not elicit a response.
Several large Indian internet companies are rationalizing their teams after making key hires during 2021, when they experienced higher demand for technology services due to the pandemic. Paytm has fired over 1,000 employees to cut costs and restructure its businesses, planning to reduce its workforce by 10-15%. Similar job cuts and business restructuring have also taken place at Flipkart’s US rival, Amazon and SoftBank-backed Meesho.
Industry experts estimate that other venture-funded Indian organizations may take similar steps by 2024.
Flipkart’s proposed restructuring comes at a time when the company is reevaluating its existing and new businesses. Cleartrip, in which Adani Group holds a 20% stake, has reached a gross merchandise value (GMV) of about $1.5-1.7 billion. Flipkart plans to invest further in its hotels business as the travel portal, acquired by the group in 2021, is expanding beyond airline bookings to include hotels and other travel-related services.

According to sources familiar with the changes, Flipkart has been working on internal coordination for several months.
This has now become an annual tradition. As part of the evaluation cycle, they (Flipkart) are restructuring the teams. Overall, the ecommerce industry including Flipkart saw an ups and downs in 2023. Therefore, reforms are now being made, said one of the sources mentioned above.
In September last year, Flipkart merged the key technology and product roles of its new businesses, Cleartrip and Flipkart Health Plus, into the core commerce team to streamline operations.
Read from ET Flipkart plans restructuring
In July, Flipkart-owned Myntra cut at least 50 jobs to focus on its top private labels.
While Flipkart has received $600 million of fresh capital from parent company Walmart as part of the existing $1 billion round, the senior management is looking to reduce expenses across various categories.