Flipkart, a Walmart-owned e-commerce giant, will lay off 1,000 employees or 5 per cent of its total workforce in an annual restructuring move, according to a Moneycontrol report citing people aware of the developments.
Bengaluru-based Flipkart undertakes these performance-based job cost cuts every year and the fresh reduction in workforce is along those lines.
Flipkart had around 22,000 people on its payroll. The total strength does not include employees from e-commerce fashion portal Myntra.
According to the Moneycontrol report, Flipkart CEO Kalyan Krishnamurthy held a townhall with employees on January 25, during which he said that the company’s financial health is improving. He added that Flipkart will be in much better shape by the end of the year.
It is possible that Flipkart’s IPO will be pushed to 2025 as the unit economics will be better, the report added citing a person aware of the developments.
“Flipkart’s Grocery business has shown a lot of positive momentum and is growing well… Kalyan also told us that Flipkart’s mobile app business is starting to make money now and that the business is doing well,” he quoted another person as saying this.
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