Giant Indian E-Commerce Company Flipkart Lays Off 700 To 1000 Employees


Giant Indian, Bengaluru based retail e-commerce company Flipkart, plans to layoff about 700-1000 employees, they have not been able to perform in accordance with the company’s expectations. According to sources, these employees and asked to submit their resignation or they will lay-off with its output package.

Sources revealed that this information is part of the senior management and in accordance with them, “Cleanliness is part of the process of creating Flipkart lean organization.”

This step of Flipkart only reflects the efforts of the administration to make a balance between the cost of controls and increase the growth rate.

Flipkart 2

About 2.3 to 3.3% of the total number of employees will be affected by this decision, as Flipkart has 30,000 employees at present. The percentage of employees dismissal can not be too high, but that’s what makes people unhappy, it is something that is not expected from Flipkart, it used to have more understanding approach to employees who do not perform well.

However, things are changing, as the chief executive Binny Bansal is working hard to keep the company in the top slot, and increase profitability.

Flipkart said in a statement that the employees who do not show the “progress”, despite the fact that they have been brought into line with the plan of increasing productivity “, they are encouraged to seek opportunities outside the company where their skills can be best used.”

Flipkart also said: “This is a fairly common practice in many industries – especially in the high speed of the organizations on the Internet.”

With increasing competition, all e-commerce companies are working to control their costs and increase their profits. The financial daily, ET reported that in April Flipkart began to cut prices, and the limit was also placed on increasing the salary. Flipkart is also seeking to reduce its monthly burn rate to $40 million from $80-100 million in the first six months of 2016.


The last time Flipkart conducted layoffs in May 2013 and almost 10% of the total number of employees, i.e, 250 affected.

Experts also believe that such a dismissal is holding the rest of the staff focused on their goals and slowing the process will not be good for the underperformers too.

Harish Kumar, Managing Partner of Wenger & Watson said. “Managers should have good facts and data to justify why a particular person is a non-performer, and to base its decision on the evidence there are also many links it takes place in this space, and the organization should help them in this regard, as well.”


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