Flipkart to lay off 1,000 employees in yearly restructuring move
What's the story
Flipkart, an e-commerce giant owned by Walmart, is planning to lay off around 1,000 employees, which accounts for nearly 5% of its total workforce, as part of an annual restructuring effort.
This news comes from insiders who spoke with Moneycontrol.
The Bengaluru-based company currently employs about 22,000 people, not including those working for its e-commerce fashion subsidiary, Myntra.
Stats
CEO Kalyan Krishnamurthy addresses employees
During a meeting today, Flipkart CEO Kalyan Krishnamurthy told employees that the company's financial situation is improving and is expected to be in a much better position by year-end.
He also mentioned that Flipkart's IPO might be delayed until 2025, as the unit economics will be more favorable by then.
Furthermore, Krishnamurthy revealed that Flipkart's Unified Payments Interface (UPI) project is progressing and is currently being tested with a small group of users.
Growth
Flipkart's mobile app business sees growth
Sources who attended the meeting shared that Krishnamurthy also stated that Flipkart's mobile app business has started generating revenue and is performing well.
The company is yet to respond to Moneycontrol's inquiries about the layoffs and other updates.
It's worth noting that Flipkart conducts performance-based job cuts annually, and this recent workforce reduction follows the same pattern.
Others
Swiggy is also slashing its workforce
Swiggy is also planning to reduce its workforce by 400 employees.
The firm currently has nearly 6,000 employees, and this move will affect around 7% of them.
To recall, the firm had fired 380 workers in January last year, and also shuttered its meat marketplace, in an attempt to lower costs.