Flipkart has reportedly carried out another round of job cuts following its latest annual appraisal cycle, with several hundred employees exiting the company after performance evaluations. The move comes as the Walmart-owned e-commerce giant continues to tighten internal processes while also preparing for a potential stock market listing in India.
According to people familiar with the matter who spoke to Moneycontrol, around 300 employees have left the company as part of the latest review exercise. With Flipkart’s workforce estimated at nearly 20,000 employees, the figure represents only a small fraction of its overall staff.
However, other reports indicate the number could be higher. Sources cited by The Economic Times suggested that between 400 and 500 employees may have been asked to leave following the review process. If those estimates are accurate, the exits would account for roughly 3–4 per cent of Flipkart’s workforce — a slightly higher proportion than what is typically seen during annual performance assessments.
Responding to queries, Flipkart said the process forms part of its routine performance management system. In a statement to The Economic Times, the company said 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. We are extending transition support to affected employees,” the company said.
People familiar with the matter also said that a larger number of employees were placed under a Performance Improvement Plan (PIP) during this year’s appraisal cycle. Those receiving the lowest ratings in the review process were reportedly asked to exit the organisation.
“More employees than usual were placed on PIP this year. Several of them received a one-star rating during their annual review and were asked to leave,” a person aware of the development told The Economic Times. The source added that the trend appears to have largely affected Flipkart’s core business teams.
This is not the first time the company has seen performance-linked workforce reductions. During the appraisal cycle in early 2024, around 1,000 employees — nearly five per cent of the workforce at the time — were asked to leave after performance reviews.
The latest development comes as many large technology and internet companies focus on improving efficiency and controlling costs. Over the past two years, the startup ecosystem has also faced slower funding inflows, pushing companies to prioritise sustainable growth and profitability.
For Flipkart, the timing also coincides with preparations for a possible public listing in India. Earlier reports suggested the company has initiated preliminary discussions with several investment banks, including Goldman Sachs, Morgan Stanley, JPMorgan Chase and Kotak Mahindra Capital regarding a potential initial public offering.
People familiar with the matter have previously indicated that the company may consider going public by late 2026 or early 2027, although no final timeline has been announced.
In December last year, Flipkart also received approval from the National Company Law Tribunal to shift the domicile of its holding company from Singapore back to India — a move widely seen as an important step in simplifying its corporate structure ahead of a potential domestic listing.