Flipkart Conducts Annual Performance Review, Resulting in 300 Employee Terminations

Flipkart Cuts 300 Employees Amid Performance Review Cycle

Flipkart, a leading e-commerce company owned by Walmart, has initiated a round of layoffs, impacting approximately 300 employees, which translates to around 1.5% of its workforce. This move comes as part of the company's annual performance review cycle, where employees in lower performance bands are typically asked to exit the organization.

Flipkart currently employs around 20,000 employees across its businesses. This latest round of exits is part of the company's yearly performance management process, which has been undertaken periodically over the past few years. In 2024, the company let go of around 1,000 employees, approximately 5% of its workforce, as part of a similar exercise.

The move is in line with Flipkart's efforts to improve operational efficiency and cost discipline, following a period of funding slowdown and a sharper focus on profitability in the broader startup ecosystem. Additionally, the company is stepping up preparations for an eventual public listing in India, with Goldman Sachs, Morgan Stanley, JP Morgan, and Kotak Mahindra Capital initiated as select investment banks to explore the feasibility of a proposed IPO.

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Industry sources suggest that Flipkart could target a listing by late 2026 or early 2027, although the final timeline and size of the offering are yet to be determined. Flipkart has also received approval from the National Company Law Tribunal (NCLT) to shift its holding company domicile from Singapore back to India, clearing a key regulatory hurdle in its preparations for a potential domestic listing.