Flipkart lays off hundreds of employees after annual performance review

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. Flipkart layoffs: Company fires hundreds of employees after annual performance review 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. The company has conducted similar performance-linked workforce reductions in the past as well. During its appraisal cycle in early 2024, around 1,000 employees, nearly five per cent of its workforce at the time, were asked to leave following performance reviews. The latest round of exits comes at a time when many large internet companies are trying to improve efficiency and maintain tighter control over costs. Over the past two years, the broader startup ecosystem has been navigating slower funding flows while placing greater emphasis on building sustainable and profitable businesses. For Flipkart, the timing also overlaps with preparations for a potential public listing in India. Earlier reports indicated that the company has begun early conversations with several investment banks, including Goldman Sachs, Morgan Stanley, JP Morgan and Kotak Mahindra Capital, to explore a possible initial public offering. People familiar with the matter previously reported that the company could consider going public by late 2026 or early 2027, although the timeline is yet to be finalised. In December last year, Flipkart also received approval from the National Company Law Tribunal to shift the domicile of its holding entity from Singapore back to India. The move was seen as an important step in simplifying the company’s corporate structure as it prepares for a possible domestic listing. - Ends