Flipkart, the e-commerce giant, and Swiggy, the food-delivery firm, have both announced job cuts due to the ongoing “funding winter” in the startup industry. The layoffs were a part of their annual performance review process. Swiggy is expected to reduce its workforce by approximately 7%, which equates to roughly 350-400 employees. The layoffs will mainly affect its technology teams and a segment of the customer-care department. This is Swiggy’s second round of layoffs, as the company had already cut 380 jobs in January last year. The move aims to improve operational efficiency in the Bengaluru-based firm, which currently employs around 6,000 people.
On the other hand, Flipkart is downsizing around 5% of its workforce, which amounts to approximately 1,000 employees. The decision comes as the e-commerce giant prepares for an initial public offering (IPO), initially scheduled for this year but now expected in 2025-2026. Flipkart is taking several measures to prepare for the IPO, including enhancing corporate governance, optimizing key finance operations, and streamlining its workforce. A source familiar with the matter revealed that the company has been regularly trimming its workforce to make the organization leaner and more efficient. Currently, Flipkart employs around 22,000 employees.
During a recent townhall meeting, Kalyan Krishnamurthy, CEO of Flipkart, reassured employees about the company’s improving financial health. He acknowledged the possibility of an IPO delay, emphasizing a valuation target of about $60 billion during the anticipated offering. He also highlighted the company’s historic low in cash losses for January and outlined growth areas, including an increased focus on hotel properties, scaling up the grocery business, and a 50% growth in the last six months.
