In line with an ET report, this isn’t the primary time Flipkart has carried out performance-based job cuts. The corporate has been finishing up related workout routines for the previous two years. Moreover, in an effort to manage prices, Flipkart has frozen contemporary hiring over the previous 12 months. At present, the corporate is within the means of closing a $1 billion financing spherical from Walmart and different traders.
Flipkart, excluding its style portal Myntra, at present employs 22,000 individuals. A supply aware of the matter acknowledged that the corporate is planning to raised make the most of its assets throughout each current and new companies. The restructuring plans and the roadmap for 2024 will likely be mentioned and finalized at a gathering of senior executives scheduled for subsequent month.
Flipkart restructuring
Regardless of the restructuring, Flipkart has no plans to rethink its choice to postpone its public providing till 2024, in line with sources. In 2022-23, Flipkart had thought-about launching an preliminary public providing (IPO), however these plans have been placed on maintain for now.
An electronic mail despatched to Flipkart by the monetary each day concerning the matter didn’t obtain a response.
A number of giant Indian web corporations have been rationalizing their groups after vital hiring throughout 2021, after they skilled excessive demand for know-how companies because of the pandemic. Paytm has laid off over 1,000 workers to chop prices and realign its companies, planning to downsize its workforce by 10-15%. Comparable job cuts and enterprise restructuring have additionally occurred at Flipkart’s US rival, Amazon, and SoftBank-backed Meesho.
Trade consultants predict that different venture-funded Indian organizations are more likely to make related strikes by means of 2024.
Flipkart’s proposed restructuring comes at a time when the corporate is reassessing its current and new traces of enterprise. Cleartrip, during which Adani Group holds a 20% stake, has reached a gross merchandise worth (GMV) of roughly $1.5-1.7 billion. Flipkart plans to take a position additional in its motels enterprise, because the journey portal, acquired by the group in 2021, expands past airline bookings to incorporate motels and different travel-related companies.
Flipkart has been engaged on inside synergies for a number of months, in line with sources conscious of the modifications.
This has develop into an annual follow now. As a part of the appraisal cycle, they (Flipkart) are restructuring groups. General, the ecommerce trade, together with Flipkart, had its ups and downs in 2023. So, corrections are being made now, stated one of many sources talked about above.
In September of final 12 months, Flipkart merged the important thing know-how and product roles of its new companies, Cleartrip and Flipkart Well being Plus, into the core commerce crew to streamline operations.
Learn From ET | Flipkart plans for restructuring
In July, Flipkart-owned Myntra reduce at the very least 50 jobs to give attention to its prime non-public labels.
Whereas Flipkart has obtained $600 million in new capital from father or mother firm Walmart as a part of the continuing $1 billion spherical, senior administration is seeking to scale back bills in varied classes.
