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Flipkart to cut 1,500 jobs as part of annual performance review
https://www.whatjobs.com/news/india/flipkart-to-cut-1500-jobs-as-part-of-annual-performance-review
By Nithya Bose in Business News, posted January 11, 2024
Flipkart, owned by the e-commerce giant Walmart, plans to reduce its workforce by 5 to 7 percent, affecting roughly 1,500 employees.
The company has started performance reviews, which will be completed by March-April 2024.
With a current employee base of 22,000, excluding those employed at its fashion arm, Myntra.
Flipkart aims to streamline its operations internally for enhanced efficiency and sustained profitability.
This move is part of an ongoing practice, as annual job cuts based on performance reviews have been a recurrent feature for the past two years.
According to sources, Flipkart has halted new hiring for the past year to save costs.
The company is engaging in a comprehensive internal restructuring to align resources better.
The e-commerce industry, including Flipkart, experienced fluctuations in its overall business during 2023, prompting corrective measures.
The annual appraisal cycle is utilized to restructure teams and optimize operations across existing and new business segments.
The company's senior executives are scheduled to convene in February to discuss the restructuring plans and the roadmap for 2024.
Various IT companies and startups are laying off their workforce after an intense hiring phase in 2021, driven by the prolonged funding winter.
For instance, Paytm has already laid off over 1,000 employees and aims to reduce jobs by 10-15 percent.
Similarly, Meesho has implemented job cuts as part of its business restructuring.
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