Flipkart, owned by Walmart, is gearing up to trim approximately 5% of its overall workforce, affecting around 1,000 employees. This move is part of the company’s annual performance review, as per a report by Moneycontrol on January 25th 2024.
The Bengaluru-headquartered e-commerce giant, inclusive of employees from the fashion portal Myntra, had a workforce of approximately 22,000 individuals.
As per the report, Flipkart carries out annual performance-based workforce reductions, and this recent cut is deemed a routine procedure. On January 25, during a town hall meeting with employees, Flipkart CEO Kalyan Krishnamurthy communicated that the company’s financial health is on an upward trajectory. With anticipated improved unit economics, the company is contemplating postponing its IPO to 2025, the report added.
A source familiar with Flipkart’s plans mentioned to Moneycontrol, “Flipkart’s Grocery business has shown a lot of positive momentum and is growing well.” The CEO also highlighted that the mobile app business of Flipkart is now generating profits and is performing satisfactorily.
Simultaneously, Flipkart is in the testing phase for its United Payments Interface (UPI) project with a select group of users. The aim is to streamline the payment process within the platform, eliminating the need for users to switch between multiple apps for transactions.
CEO Kalyan Krishnamurthy stated that UPI remains crucial, with approximately 45 percent of all Amazon purchases settled through Amazon Pay UPI.
In December 2023, Walmart, the US-based retailer, injected $600 million to ensure Flipkart’s robust capitalization. Previously, Flipkart had contemplated a listing in 2022-23.
