E-commerce giant Flipkart is said to be contemplating a workforce reduction of 5-7% in early 2024, potentially affecting nearly 1,500 employees. Currently employing around 22,000 people, the Walmart-owned company is reportedly initiating this measure through performance reviews, with the anticipated job cuts likely to be executed by March-April, as per insider information. The Economic Times was the first to break the news about Flipkart's forthcoming workforce adjustments.
In addition to the staff reduction, Flipkart is also exploring internal restructuring to optimize its resources and ensure sustained profitability. Although the company has not issued an immediate comment on the matter, it's worth noting that annual job cuts based on performance reviews have been a part of Flipkart's history.
According to data from business intelligence platform Tofler, Flipkart, a major player in the e-commerce sector, achieved a total revenue of Rs 56,013 crore in the 2023 financial year. This marked a 9% growth from the previous fiscal year, where the revenue stood at Rs 51,176 crore. Despite the revenue increase, the company reported a notable net loss of Rs 4,834 crore in FY23, reflecting a substantial 42% increase from the preceding fiscal year.
The financial report states, "Net loss for the financial year ending on March 31, 2023, was Rs 48,393 million, compared to the previous year ending on March 31, 2022, of Rs 33,624 million, witnessing an increase of 44% in net loss." Flipkart's move towards optimizing its workforce and internal structure seems to be a strategic response to these financial challenges.
(With Agency Inputs)
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