Flipkart trims workforce following annual performance review

Flipkart asked 400-500 staff to leave after strict annual performance reviews. The move affects 3-4% of employees as the firm eyes a future IPO

Indian e-commerce giant Flipkart has reportedly asked between 400 and 500 employees to leave the organization as part of its annual performance appraisal cycle.

​A Stricter Evaluation Process

While performance-based exits are a standard annual practice for large tech firms, the scale of this year's reduction is notably higher than usual. According to industry sources, these departures represent roughly 3% to 4% of Flipkart's overall workforce. Historically, the company only releases about 1% to 2% of its bottom-performing staff during these yearly reviews. Insiders claim that a significantly higher number of employees were placed on Performance Improvement Plans (PIP) this cycle, with many receiving a one-star rating that ultimately led to their dismissal.

Company Response and Strategy

Addressing the layoffs, a Flipkart spokesperson confirmed the workforce adjustment, stating that the company routinely conducts evaluations aligned with strictly defined expectations. The representative added that the e-commerce firm is providing transition support to all affected individuals. This move appears to be isolated to Flipkart's core business, as sources note similar stringent actions are not currently happening across other companies within the broader corporate group.

​Focusing on Profitability

This development comes as Flipkart continues to prioritize operational discipline and financial sustainability, reportedly in preparation for a potential Initial Public Offering (IPO). Financial data from the fiscal year 2024-2025 indicates that Flipkart Internet's revenue grew by 14% to reach ₹20,493 crore. While this growth successfully helped narrow the firm's consolidated net losses, the pace of revenue expansion slowed down compared to the 21% growth recorded in the previous fiscal year. By tightening its cost structures, the Walmart-backed company is following a broader industry trend where major tech startups are shifting focus from rapid expansion to strict profitability.

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