Walmart-led e-commerce giant Flipkart will not give salary hikes to 4,500 professionals working in senior positions in Grade 10 and above categories, which are inclusive of manager and vice president-level roles.
Flipkart took the action to retain cash flow and focus on the company’s profitability, sources told Business Standard.
“Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interests in mind. In line with this, about 70% of our employee base will continue to get an increase in their compensation. Additionally, our stock option allocation and bonus exercise will continue as is for those who are eligible,” said a Flipkart spokesperson.
The company further added that it will stay committed to enhancing value for all employees through employee-centric policies, continued skilling and training programs, regular promotion cycles, wealth creation for ESOP holders, and enhanced benefits, including medical insurance.
In a letter, seen by Business Standard, addressed to employees, Flipkart’s CPO Krishna Raghavan said, “At Flipkart, we have always attempted to balance employee and organisation priorities, with our actions being driven by what’s right for our people. Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interests in mind.”
At present, Flipkart has a base of 15,000 employees. Of this, 10,500 (nearly 70%) are full-time employees that are working under managers and would receive salary hikes calendar year 2023.
Importantly, Flipkart’s new policy will not be applicable to about 200K third-party and contractual workers, which are working with the company in the fields of supply chain and warehouse management.