Flipkart asks 400–500 employees to exit after performance reviews

In a significant workforce reduction, Flipkart, the Walmart-owned e-commerce giant, has requested the departure of approximately 400 to 500 employees after completing its annual performance assessments. This move accounts for about 3 to 4% of the company's total staff, a figure notably higher than the usual 1 to 2% typically seen in previous annual reviews when employees in the lowest performance tiers leave, as reported by the Economic Times. The company clarified that this decision is part of its standard evaluation process. "Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organization. We are supporting affected employees with transition assistance," stated a company spokesperson. Insiders revealed that more employees than usual have been placed on performance improvement plans this year, with many receiving one-star ratings during their evaluations, prompting the company to ask them to resign. This trend appears to be unique to Flipkart, as similar actions have not been reported across other companies within the Walmart group. This recent wave of layoffs follows previous instances, including an early 2024 decision to let go of around 1,000 employees amid efforts to enhance operational efficiency. As the tech industry continues to navigate a post-pandemic landscape, large internet companies are increasingly focusing on cost management and profitability. Furthermore, this development comes as Flipkart prepares for a potential initial public offering (IPO) in India. Reports indicate that the company has initiated discussions with major investment banks, such as Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Kotak Mahindra Capital, to assess the viability of this IPO endeavor.