New Delhi: In its annual restructuring move, e-commerce giant Flipkart, owned by Walmart, is set to part ways with approximately 1,000 employees, constituting around 5 percent of its workforce. The decision comes as part of the company’s routine performance-based job cost cuts, sources familiar with the matter informed Moneycontrol.
Employee Count And Exclusion Of Myntra Staff
As of now, Flipkart has a workforce of around 22,000 people based in Bengaluru, excluding employees from the e-commerce fashion portal Myntra. (Also Read: Azim Premji Gifts Rs 500 Crore Worth Wipro Shares To Sons Rishad And Tariq)
No Immediate Response From Flipkart
According to a Moneycontrol report, the website has reached out to Flipkart for comments on the development, but the company has not provided an immediate response to queries regarding the job cuts. (Also Read: Riding The Billions: Meet Indian Tycoon Whose Company Powers Luxury Giants BMW, Mercedes Benz, Rolls Royce And Net Worth Is Rs…)
CEO’s Townhall Insights
During a town hall with employees on January 25, Flipkart CEO Kalyan Krishnamurthy shared insights into the company’s financial health. He assured employees that the company’s financial situation is on the upswing and anticipates a significant improvement by the end of the year.
Potential Impact On IPO Plans
Krishnamurthy hinted at the possibility of delaying Flipkart’s Initial Public Offering (IPO) until 2025. The decision is attributed to the expectation of better unit economics by that time, positioning the company for a more favorable IPO.
Positive Developments In Business
Despite the restructuring, Krishnamurthy highlighted positive developments within Flipkart. He mentioned that the company’s United Payments Interface (UPI) project is taking shape and undergoing testing with a limited group of users.
Additionally, he reported that Flipkart’s mobile app business is now turning profitable, indicating positive trends and growth in the business.