E-commerce major Flipkart is reportedly planning to reduce its workforce by 5-7 per cent in early 2024 that may affect nearly 1,500 employees. The Walmart-owned company currently has around 22,000 employees.
According to sources, Flipkart has initiated the exercise via performance reviews and the job cuts are likely to be implemented by March-April.
The Economic Times was first to report about the upcoming move by Flipkart.
The company is also looking at internal restructuring to optimise its resources in order to remain profitable.
The company did not immediately comment on the move. Annual job cuts based on performance reviews at Flipkart have happened in the past too.
E-commerce major Flipkart had total revenue of Rs 56,013 crore in the 2023 financial year, according to data from business intelligence platform Tofler.
The revenue saw a 9 per cent growth in FY23 from FY22 at Rs 51,176 crore. The company reported a net loss of Rs 4,834 crore in FY23, marking a substantial 42 per cent increase from the earlier fiscal year.
“Net loss for the financial year ending as on March 31, 2023, was Rs 48,393 million as against that of the previous year ending as on March 31, 2022, of Rs 33,624 million witnessed an increase of 44 per cent in the net loss,” according to the financial report.