Walmart-owned e-commerce giant Flipkart has reportedly laid off around 300 employees as part of its annual performance review cycle. The move affects roughly 1.5% of the company’s workforce, which currently stands at about 20,000 employees across its various businesses.
While the number may appear relatively small compared to large-scale layoffs seen in recent years across the tech industry, the development highlights how major internet companies are increasingly focusing on performance-driven workforce optimisation and cost discipline.
In this article, we will delve into the details of the layoffs, Flipkart’s performance review process, the company’s focus on efficiency, and how these developments tie into its long-term IPO ambitions.
Credits: The Economic Times
Layoffs Linked To Annual Performance Review Process
The latest round of job cuts is part of Flipkart’s routine annual performance management exercise, where employees are evaluated against clearly defined performance metrics.
Under this process, those who fall into lower performance bands may be asked to leave the organisation. According to sources familiar with the development, around 300 employees were affected this year, representing a small percentage of the overall workforce.
A spokesperson for Flipkart confirmed the development, stating:
“Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organisation. We are supporting affected employees with transition support.”
Such review-based exits have become a common feature in large tech companies globally, as firms increasingly prioritise high productivity and performance-linked workforce structures.
Similar Exercise Conducted In 2024
This is not the first time Flipkart has undertaken workforce rationalisation through its performance review system.
In early 2024, the company let go of approximately 1,000 employees, accounting for nearly 5% of its workforce at the time. That round of exits also followed the company’s annual performance evaluation cycle.
Compared to last year’s reduction, the latest round is significantly smaller, suggesting that the company may have already completed much of its workforce restructuring in earlier cycles.
Still, the move reflects the continued emphasis among tech firms on maintaining lean and efficient operations amid a changing funding environment.
Focus On Cost Discipline And Operational Efficiency
Like many companies in the global startup and technology ecosystem, Flipkart has spent the past few years focusing heavily on improving operational efficiency and tightening cost structures.
Following the funding boom of 2020 and 2021, the broader startup ecosystem has entered a phase marked by slower funding activity, increased investor scrutiny, and a strong push toward profitability.
As a result, companies across sectors—from e-commerce and fintech to SaaS—have been reassessing their organisational structures and expenses.
For Flipkart, this has meant prioritising cost discipline, streamlined operations, and productivity improvements, while continuing to invest in areas such as logistics, technology infrastructure, and customer experience.
IPO Preparations Begin To Take Shape
The workforce adjustment also comes at a time when Flipkart is quietly preparing for a potential public listing in India.
According to earlier reports, the company has begun preliminary discussions with investment banks, including:
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Goldman Sachs
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Morgan Stanley
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JPMorgan Chase
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Kotak Mahindra Capital
These discussions are still in the early stages, with the banks exploring the feasibility and potential structure of a proposed IPO.
Industry sources previously indicated that Flipkart could target a public listing by late 2026 or early 2027, although the final timeline and size of the offering remain undecided.
Shift Of Holding Company Back To India
Another key step in Flipkart’s IPO journey came in December, when the company received approval from the National Company Law Tribunal to shift its holding company domicile from Singapore back to India.
The relocation is seen as a major regulatory milestone in Flipkart’s path toward a domestic public listing.
The restructuring aligns the company’s corporate structure with its largely India-focused operations, simplifies the group’s organisational framework, and potentially makes it easier to navigate regulatory requirements for a future IPO.
