Flipkart Lays Off Around 300 Employees In Annual Performance Review As IPO Plans Gather Pace

The move comes as part of the company’s routine performance management process, which typically evaluates employee performance and may lead to exits for those placed in the lower performance bands.

The company has undertaken similar exercises in previous years as part of its performance review framework.

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Walmart-owned e-commerce platform Flipkart has reportedly asked around 300 employees to leave the company as part of its annual performance review cycle, according to people familiar with the development.

The latest round of exits represents roughly 1.5 per cent of Flipkart’s total workforce. The company currently employs about 20,000 people across its various businesses in India, reported Moneycontrol.

The move comes as part of the company’s routine performance management process, which typically evaluates employee performance and may lead to exits for those placed in the lower performance bands.

Part Of Annual Performance Management Process

According to people aware of the matter, the exits are linked to Flipkart’s yearly internal assessment process. Under this system, employees are reviewed across performance metrics, and those falling in the lower rating categories may be asked to leave the organisation.

The company has undertaken similar exercises in previous years as part of its performance review framework.

Such evaluation cycles are not uncommon among large technology and internet companies, where performance-linked restructuring is periodically carried out to recalibrate teams and improve organisational efficiency.

Similar Exercise Carried Out Earlier

This is not the first time Flipkart has carried out workforce reductions through its performance review process.

In early 2024, the company had let go of around 1,000 employees, representing nearly 5 per cent of its workforce at the time, as part of a similar internal review exercise.

Industry observers note that many technology companies globally have adopted stricter performance management practices in recent years as they shift their focus toward profitability and operational discipline.

Focus On Cost Discipline And Efficiency

Flipkart’s latest workforce adjustment comes amid a broader trend across the startup and technology ecosystem, where companies have increasingly prioritised cost control and operational efficiency.

Over the past two years, the startup funding environment has seen a slowdown, prompting several internet companies to reassess spending and sharpen their focus on sustainable business models.

As a result, organisations across the sector have emphasised productivity, profitability and disciplined expansion strategies. Performance-linked restructuring has therefore become a recurring feature across large internet platforms.

IPO Preparations Underway

The workforce adjustment also comes at a time when Flipkart has begun early preparations for a potential public listing in India.

The company has initiated preliminary discussions with several investment banks, including Goldman Sachs, Morgan Stanley, JP Morgan and Kotak Mahindra Capital, to explore the feasibility of a proposed initial public offering (IPO).

Industry sources have previously indicated that Flipkart could target a listing by late 2026 or early 2027. However, the timeline, size and structure of the potential IPO are yet to be finalised.

Corporate Restructuring Ahead Of Listing

In December last year, Flipkart cleared an important regulatory hurdle linked to its listing plans when the National Company Law Tribunal (NCLT) approved the company’s request to shift its holding company domicile from Singapore to India.

The relocation of the holding structure is part of a wider corporate restructuring aimed at aligning Flipkart’s legal framework with its largely India-focused business operations.

The move is expected to simplify the group’s structure and facilitate preparations for a domestic stock market debut.

Competitive E-Commerce Landscape

Flipkart remains one of the largest e-commerce platforms in India and continues to compete closely with Amazon in the country’s rapidly expanding online retail market.

The company, controlled by US retail giant Walmart, operates across several segments including online retail, logistics and digital payments.

India’s e-commerce market has grown significantly over the past decade, supported by rising internet penetration, improved digital payments infrastructure and expanding consumer adoption in smaller cities and towns.

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