Workforce transition impacts about 3–4% of company staff
Walmart-backed ecommerce giant Flipkart has asked around 400–500 employees to leave the company following its annual performance review process, according to people familiar with the development. The number represents roughly 3–4% of Flipkart’s workforce, higher than the usual 1–2% of employees typically exited each year for performance reasons.
In response to media queries, Flipkart said the company conducts regular performance evaluations aligned with clearly defined expectations, and a small percentage of employees may transition out of the organisation as part of the process. The company added that it is providing transition support to affected employees.
Higher number of employees placed on performance plans this year
Sources indicate that a larger number of employees were placed on Performance Improvement Plans (PIPs) this year. Several employees reportedly received low performance ratings in the annual review cycle and were subsequently asked to exit.
The development comes as the company continues to focus on improving operational efficiency and preparing for future growth initiatives.
Growth slows despite improving financial performance
For FY25, Flipkart Internet, the marketplace arm of the company, reported operating revenue of Rs 20,493 crore, reflecting a 14% year-on-year increase. At the same time, its net losses declined 37% to Rs 1,494 crore.
However, the growth rate was slower compared to the 21% revenue growth recorded in FY24, indicating moderation in the company’s expansion pace.
Strategic focus shifts amid evolving ecommerce competition
Flipkart operates its India marketplace primarily through Flipkart Internet, which generates revenue via seller commissions, advertising income, and seller service fees. The company has also been expanding into quick commerce with the launch of Flipkart Minutes in 2024, signalling its push into faster delivery models amid intense competition in India’s ecommerce sector.
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