Flipkart has asked approximately 400-500 employees to leave this year based on performance reviews, representing 3-4% of its workforce, which is higher than its typical annual attrition rate of 1-2% for low performers.
The company stated this is part of its regular performance review process and that it is providing transition support to affected employees. Sources indicate an unusually high number of employees were placed on performance improvement plans and given low ratings.
Financially, Flipkart Internet's revenue grew 14% in FY25, a slowdown from the over 20% growth of the previous two years, though its net losses decreased. The article notes a general slowdown in India's ecommerce industry.
Main topics: Employee layoffs/performance reviews, Flipkart's financial performance, and the broader ecommerce industry context.
Ecommerce platform Flipkart has asked about 400-500 employees to leave the company this year based on performance review, multiple people aware of the matter told ET.
This represents 3-4% of the company's employee base, and is higher than the usual 1-2% of the bottom performers that the company lets go every year.
Responding to ET's queries, Flipkart said, "Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organisation. We are supporting affected employees with transition support."
âMore than usual employees have been put on a performance improvement plan (PIP) this year in Flipkart. Many of them received one star rating in their annual review and asked to leave,â said one person aware of the developments. âItâs not happening in other companies of the group.â
In FY25, Flipkart Internet, the marketplace arm of Flipkart, reported revenues of Rs 20,493 crore, up 14% year-on-year (YoY), while its net losses fell 37% to Rs 1,494 crore.
However, Flipkart Internet's 14% growth rate in FY25 was slower than the 21% increase in operating revenue it saw in fiscal 2024, which was the second straight year of over 20% growth.
Flipkart operates its India business through multiple entities, with Flipkart Internet running the marketplace. This entity earns revenue primarily through seller commissions, advertising income, and other fees for seller services. A general slowdown in Indiaâs ecommerce industry has
In August 2024, the company launched its quick commerce arm Flipkart Minutes.
This represents 3-4% of the company's employee base, and is higher than the usual 1-2% of the bottom performers that the company lets go every year.
Responding to ET's queries, Flipkart said, "Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organisation. We are supporting affected employees with transition support."
âMore than usual employees have been put on a performance improvement plan (PIP) this year in Flipkart. Many of them received one star rating in their annual review and asked to leave,â said one person aware of the developments. âItâs not happening in other companies of the group.â
In FY25, Flipkart Internet, the marketplace arm of Flipkart, reported revenues of Rs 20,493 crore, up 14% year-on-year (YoY), while its net losses fell 37% to Rs 1,494 crore.
However, Flipkart Internet's 14% growth rate in FY25 was slower than the 21% increase in operating revenue it saw in fiscal 2024, which was the second straight year of over 20% growth.
Flipkart operates its India business through multiple entities, with Flipkart Internet running the marketplace. This entity earns revenue primarily through seller commissions, advertising income, and other fees for seller services. A general slowdown in Indiaâs ecommerce industry has
In August 2024, the company launched its quick commerce arm Flipkart Minutes.
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