Walmart-owned Flipkart is all set to lay off around 5 percent of its total workforce, which constitutes about 1,000 employees, as part of its annual performance review exercise, reported Moneycontrol on 25 January.
The Bengaluru-based e-commerce giant had around 22,000 people on its payroll, including employees from e-commerce fashion portal Myntra.
According to the report, Flipkart undertakes these performance-based job cost cuts every year and this fresh reduction is just a regular process.
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On 25 January, Flipkart CEO Kalyan Krishnamurthy held a town hall with employees where he said the company’s financial health is improving. As the unit economics will be better, the firm is mulling to push its IPO to 2025, added the report.
“Flipkart’s Grocery business has shown a lot of positive momentum and is growing well,” Moneycontrol quoted a source aware of the company’s plans saying.
“Kalyan also told us that Flipkart’s mobile app business is starting to make money now and that the business is doing well.”
Meanwhile, Flipkart’s United Payments Interface (UPI) project is currently being tested out with a small set of users, said its CEO.
The company is testing Flipkart’s UPI, so that customers, while shopping stay on the platform instead of having to switch between multiple apps to make payments.
UPI continues to be important as around 45 percent of all purchases made on Amazon are settled using Amazon Pay UPI.
Walmart – the US-based retailer – even infused $600 million in December 2023 to ensure Flipkart is well capitalized. Flipkart was earlier eyeing a listing in 2022-23.
With agency inputs.
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Published: 25 Jan 2024, 08:10 PM IST