Ecommerce platform Flipkart has sacked about 400-500 employees on the basis of their performance review, multiple people aware of the matter told ET.
According to one of the sources, every year, Flipkart asks its poorest performers to leave; the latest job cuts represent 3-4% of the company’s headcount, higher than the 1-2% it usually lets go. The exercise has impacted employees across functions including operations, engineering, and marketing.
“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,” said one person aware of the developments. “This is not happening in other group companies.”
A similar exercise was conducted in 2023, when the Walmart-owned company let go of around 1,000-1,200 people. In 2024 as well, Flipkart had trimmed its employee count by 5-7%.
Responding to queries sent by ET, Flipkart confirmed the development. “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 ecommerce firm has nearly 18,000-20,000 employees. The annual performance-review linked job cuts come close on the heels of Flipkart planning to go public, which could potentially take place in the next year or so.
Over the past few years, Flipkart has also been tightening its top-leadership deck, reducing the number of senior vice presidents (SVPs) to fewer than a dozen from about 18 in 2024.
To facilitate its public listing, the Kalyan Krishnamurthy-led company is in the process of flipping back its headquarters from Singapore to India. In December, the company received the National Company Law Tribunal’s approval for this.
Flipkart’s rival Amazon had laid off close to 800 people in January as part of its global retrenchment process, which saw 16,000 people lose their jobs.
In August 2024, the company launched its quick commerce arm Flipkart Minutes, which is in the process of a rapid scale up.
In fiscal 2025, Flipkart Internet, the marketplace arm of Flipkart, reported revenues of Rs 20,493 crore, up 14% year-on-year (YoY), while its net losses fell 37% to Rs 1,494 crore. However, Flipkart Internet’s 14% growth rate in FY25 was slower than the 21% increase in operating revenue it saw in 2024, which was the second straight year of over 20% growth.
Flipkart operates its India business through multiple entities, with Flipkart Internet running the marketplace. This entity earns revenues primarily through seller commissions, advertising income, and other fees for seller services.