According to recent reports from the media, Flipkart, which is owned by Walmart, is reducing its workforce by five to seven per cent. This is part of the company’s annual practice of performance-based job cuts, which it has been following for the past two years. The process is expected to be completed by March or April, which is in line with the ongoing performance evaluations and the end of the current fiscal year.
This workforce reduction is part of Flipkart’s strategy to use its resources more efficiently, both in its existing operations and new ventures. The company’s senior executives are scheduled to meet next month to discuss and finalize the restructuring plans and the 2024 roadmap.
The report also mentioned that Flipkart has been controlling its expenses by not hiring new employees for the past year. Currently, the company is in the process of securing a $1 billion funding round from Walmart and other investors.
Despite the workforce reduction, Flipkart has not changed its decision to postpone its public offering until 2024. Initially, the company had planned to go public in 2022-23 but decided to wait.
Preious reports suggest that Flipkart’s operating revenue increased by 42 per cent to Rs 14,845 crore at the end of December in FY23. Data from the business-intelligence platform, Tofler, shows that Flipkart’s total loss decreased by nine per cent to Rs 4,026 crore. Total expenses increased by 26 per cent to Rs 19,043 crore, with a significant amount spent on logistics, employee benefits, and advertising.