Walmart-owned e-commerce giant Flipkart has let go of 400-500 employees as part of its annual performance review cycle, Economic Times reported on Friday. The job cuts account for roughly 3 to 4% of the company’s workforce, higher than the usual 1 to 2% of employees typically asked to leave each year as part of the performance evaluation process, the report stated.
The exits are reportedly part of Flipkart’s yearly performance management process, under which employees placed in the lower performance bands are typically asked to leave the organisation. Similar exercises have been carried out periodically over the past few years as the company continues to refine its workforce structure.
Responding to the development, Flipkart told ET that it conducts periodic performance reviews based on clearly defined expectations. “As part of this process, a small percentage of employees may transition out of the organisation,” the company said, adding that it is providing transition support to those affected.
In early 2024, Flipkart carried out a similar exercise during its annual review cycle, reportedly letting go of around 1,000 employees or about 5% of its workforce at the time.
Layoffs in Indian startups
Layoffs have continued to ripple through India’s startup ecosystem, with more than 4,500 employees losing their jobs since July last year, according to data from executive search firm Longhouse Consulting cited in a report by The Times of India last month.
A significant portion of the job losses has been linked to the sudden ban on online real-money gaming in parts of the country. This forced several startups in the sector to shut down almost overnight, pushing many employees out of work.
Beyond regulatory shocks, shifting investor priorities are also reshaping the hiring landscape. With venture funding becoming more selective, investors are increasingly pressing startups to focus on profitability and operational discipline. As a result, many companies are opting to run leaner teams and prioritise hiring only for roles directly tied to revenue growth and core business functions, the report stated.