Flipkart Plans Workforce Reduction as Part of Cost Control Strategy
E-commerce giant Flipkart is contemplating a plan to trim its workforce by 5-7% based on performance as part of its cost control strategy, according to The Economic Times. The anticipated layoffs are expected to impact 1100-1500 employees, and the company aims to conclude this reduction by March-April 2024. This decision follows the company’s previous move to freeze hiring for a year. Flipkart has been implementing annual job cuts based on performance for the past two years. With the current restructuring plan aligned with its 2024 roadmap, the impact of this reduction is likely to affect senior executives, and discussions are expected to be finalized in an upcoming meeting. Despite the layoffs, Flipkart’s plans for its IPO in 2024 remain unchanged.
Flipkart Considers Collaboration with Cleartrip
Flipkart is reportedly contemplating a collaboration with Cleartrip, in which the Adani Group holds a 20% stake. Cleartrip focuses on airline bookings, and this collaboration could potentially enhance Flipkart’s hotel business. The partnership aligns with Flipkart’s strategic plans, supported by a $1 billion funding round involving investments from Walmart and other companies.
Under the leadership of Group CEO Kalyan Krishnamurthy, Flipkart is diversifying its offerings, targeting groceries, social commerce (Shopsy), and fintech (Super. Money) to expand its user base.
Similar to other companies like Paytm, Amazon, and Meesho, Flipkart is exploring cost-cutting and restructuring initiatives in response to market dynamics. The potential collaboration with Cleartrip could further strengthen Flipkart’s position in the e-commerce and travel sectors.