Walmart-owned Flipkart has initiated a workforce reduction program that may result in a reduction of five to seven percent in its overall staff, as reported by The Economic Times (ET). This action aligns with the company’s annual performance-driven job cuts, a practice that has been implemented for the last two years. The completion of this process is anticipated by March-April, aligning with the ongoing performance evaluations and the conclusion of the current fiscal year.
The e-commerce behemoth, boasting a workforce of 22,000 employees (excluding Myntra), has been proactively controlling expenditures, which includes a freeze on new hires in the past year. Concurrently, the company is in the process of concluding a $1 billion financing round from Walmart and other investors.
Flipkart Focuses on Resource Optimization:
The downsizing of the workforce is in line with Flipkart’s emphasis on optimizing resources across both its established and newly launched ventures. The company is slated to deliberate on and formalize the restructuring strategies along with the roadmap for 2024 during an imminent meeting of senior executives scheduled for the next month.
Although there is a reduction in the workforce, there are currently no indications of reconsidering the decision to defer Flipkart’s public offering until 2024. Initially contemplating an IPO launch in 2022-23, Flipkart chose to postpone those plans.
Flipkart achieved a 42% increase in operating revenue, amounting to INR 14,845 crore by the conclusion of December in the current financial year (FY23). As per information obtained from the business intelligence platform Tofler, Flipkart’s overall loss reduced by nine percent to INR 4,026 crore. Total expenses saw a 26% rise to INR 19,043 crore, with a notable portion dedicated to logistics, employee benefits, and advertising expenditures.
Continue Exploring: Flipkart’s B2C division nears INR 15,000 Cr in sales for FY23, registers reduced net loss of INR 4,026 Cr
