Flipkart Axes Hundreds Post-Appraisal

Flipkart has initiated another round of job cuts, with hundreds of employees reportedly exiting the company after their latest annual appraisal cycle. These performance-driven exits are occurring as the e-commerce firm tightens internal processes and prepares for a possible stock market listing in India.

Sources suggest between 300 and 500 employees may have been affected, representing a small to moderate percentage of Flipkart's workforce. The company stated this is part of its regular performance evaluation system, where a small percentage of employees may transition, and affected individuals are provided with support.

This year saw a notable increase in employees placed on performance improvement plans (PIPs). Those receiving the lowest ratings were reportedly asked to leave, with the trend seemingly concentrated within Flipkart's core business operations. This follows similar workforce reductions in early 2024, where approximately 1,000 employees departed after performance reviews.

The company's recent actions align with a broader trend in the internet industry toward improved efficiency and cost management amid slower funding flows. Simultaneously, Flipkart is reportedly exploring an initial public offering in India, having begun early conversations with investment banks. The company also recently approved shifting its holding entity's domicile from Singapore back to India, a move considered preparatory for a domestic listing.