Walmart-owned e-commerce giant Flipkart reportedly asked approximately 400 to 500 employees to leave the company. While the company described the move as part of its “standard operational hygiene,” the scale of the exits is significantly higher than in previous years.
The job cuts represent about 3% to 4% of Flipkart’s total workforce of 20,000, roughly double the usual 1% to 2% typically let go during annual cycles.
The “Performance” Rationale
The layoffs are tied to the conclusion of the company’s annual performance review cycle.
- Low Ratings: Sources indicate that a higher-than-usual number of employees were placed on Performance Improvement Plans (PIPs). Many who were asked to leave reportedly received “one-star” ratings—the lowest possible score.
- Broad Impact: The exits have affected multiple departments, including engineering, operations, and marketing.
- Company Stance: A Flipkart spokesperson stated, “Flipkart conducts regular performance reviews… As part of this process, a small percentage of employees may transition from the organisation.” The company also confirmed it is providing transition support to those affected.
Strategic Context: Preparing for IPO
This “trimming” is widely seen as a move to optimize the balance sheet and streamline operations ahead of a planned Initial Public Offering (IPO) in late 2026 or early 2027.
| Strategic Move | Status / Impact |
| Domicile Shift | Received NCLT approval in Dec 2025 to move headquarters from Singapore back to India. |
| Leadership Trim | Reduced Senior Vice Presidents (SVPs) from 18 to fewer than 12 over the last two years. |
| Revenue Growth | Reported ₹20,493 crore in FY25 (up 14% YoY), though growth has slowed from 21% in FY24. |
| Loss Reduction | Successfully narrowed net losses by 37% to ₹1,494 crore in FY25. |
Pivoting to Quick Commerce
While cutting staff in legacy departments, Flipkart is aggressively hiring and investing in its new quick-commerce arm, Flipkart Minutes, to compete with Blinkit and Zepto. The company recently appointed several new VPs for supply chain and grocery to manage this rapid scale-up.
The Broader Industry Trend
Flipkart isn’t alone in this “efficiency drive.” Just this week, Amazon also confirmed it had cut approximately 100 jobs in its robotics division, following a much larger wave of 30,000 corporate role eliminations globally since late 2025.
