Walmart-owned e-commerce company Flipkart has reportedly laid off around 400 to 500 employees as part of its annual performance evaluation process, according to a report by The Economic Times. The job cuts account for nearly three to four per cent of the company’s workforce, which is higher than the usual one to two per cent exits that typically occur during the yearly review cycle.
The report noted that the departures are linked to Flipkart’s routine performance management exercise, where employees placed in the lower performance brackets are questioned to exit the organisation. Similar workforce adjustments have been carried out over the past few years as the company continues to restructure and streamline its teams.
Reacting to the development, Flipkart declared it conducts periodic performance reviews based on clearly defined expectations for employees. The company stated that a compact percentage of employees may relocate out of the organisation as part of this process. It also added that support is being provided to affected employees to assist them transition.
Earlier in 2024, Flipkart had undertaken a similar exercise during its annual review cycle, when around 1000 employees, roughly five per cent of its workforce at the time, were reportedly questioned to leave.
Startup layoffs continue across IndiaLayoffs have continued across India’s startup ecosystem in recent months. According to data from executive search firm Longhoutilize Consulting, cited in a report by The Times of India, more than 4500 startup employees have lost their jobs since July last year.
A significant share of these job losses has been linked to regulatory action against online real-money gaming in several parts of the counattempt. The sudden ban forced multiple startups operating in the sector to shut down quickly, leaving many workers unemployed.
At the same time, altering investor expectations are also influencing hiring decisions. With venture capital funding becoming more selective, investors are urging startups to prioritise profitability and tighter operational discipline. As a result, many companies are now choosing to operate with leaner teams and are focutilizing hiring efforts only on roles that directly contribute to revenue growth and core business operations.
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