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Amid Job Cuts, No mass layoffs at Flipkart – Raghavan, Chief People Officer

Amid Job Cuts No mass layoffs at Flipkart - Raghavan Chief People Officer

Flipkart is not among the companies that hire thousands and then lay off people to reduce headcount, said chief people officer Krishna Raghavan.

According to a report in Livemint.com, Raghavan said that Flipkart is not among those companies that hire thousands and then lay off only to reduce the headcount. “We do responsible hiring and there are no mass layoffs happening at Flipkart,” the publication quoted Raghavan. 

The report adds that Flipkart’s decision not to give hikes to senior management will also not lead to any job cuts. On this, Raghavan clarified that the decision had been taken as last year, a hike and promotion cycle happened, which was followed by a stock option buyback plan. 

In recent times, “over-hiring” is being used as a reason for laying off employees across sectors after a year of recruitment frenzy. In November, Flipkart went for an employee stock option (ESOP) buyback plan of $700 million.

It has also decided to give increments to nearly 4000 senior managers to bring in pay parity within the firm and does not expect this to impact attrition figures as there have been sufficient rewards, merit-based increments and wealth creation opportunities for its workforce.

“In January 2022, we did a one-time increase on salaries off-cycle. We continued pretty much with all the promotions. So, the 3000-4000 people get their promotions , and promotion-linked increments. They get their bonus, they get their new ESOP grants, and there’s a one-time discretionary payout that will happen in the second quarter (by June-end),” he said. “Flipkart is one company in the ecosystem where ESOPs actually turn into liquidation opportunities.” The company is not ruling out more such “liquidation opportunities” for its employees in the future.

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