Flipkart lays off hundreds of employees after annual performance review

Flipkart has reportedly asked hundreds of employees to leave following its annual performance review cycle, with estimates suggesting 300 to 500 workers were affected. The move comes as the e-commerce company wants operational discipline while preparing for a potential IPO.

Flipkart has reportedly carried out another round of job cuts following its latest annual appraisal cycle, with hundreds of employees asked to leave the company after performance evaluations. The development comes as the Walmart-owned e-commerce firm continues to tighten internal processes while preparing for a possible stock market listing in India.

People familiar with the matter told Moneycontrol that roughly 300 employees have exited the company as part of the latest review process. With Flipkart’s total workforce estimated at around 20,000 employees, the number represents a small portion of the overall staff.

However, other reports suggest the number of affected employees may be higher. According to people aware of the development who spoke to The Economic Times, the total number of employees asked to leave after the review could be between 400 and 500. If those estimates are accurate, the exits would account for around 3 to 4 per cent of Flipkart’s workforce, which is higher than the proportion typically affected during such annual assessments.

Responding to queries, Flipkart said the process is part of its regular performance evaluation system. The company told The Economic Times, “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.”

People familiar with the review process said a larger number of employees than usual were placed under a performance improvement plan (PIP) this year. Employees who received the lowest ratings during the evaluation were reportedly asked to leave the organisation.

“More 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,” one person aware of the developments told The Economic Times. The person added that the trend appears to be limited largely to Flipkart’s core business operations.