Flipkart merges departments to pump profit

Flipkart is only hiring after a very close evaluation of each and every new position.

In this cut-throat competition where funding is drying up and customers are switching channels to get the best deal, Flipkart has decided to tweak its business strategies to increase its profitability to as much as 30 per cent.

As per company’s new plan, it has decided to merge its departments, cut short its hiring process to minimum and to centralize purchases to boost its profitability. The move came after Flipkart burned lot of cash in advertising, branding and hiring new talents and now, it feels that it has reached a point where it can go easy on these processes to pump more profitability.

The engineering departments of logistics arm Ekart and the advertising and ecommerce units will be unified into one as part of the exercise, said people with knowledge of the matter. Independent categories such as large appliances, small appliances, furniture, home decor, kitchen and furnishing will be clubbed into one home.

The sources close to the story revealed that now, the company is only hiring after a very close evaluation of each and every new position. In its recently released statement, Flipkart said that its hiring plans are in line with the business goals and the company is continuing to hire rich talent in its areas of focus. Over the past years, it has built a team of outstanding global professionals. This year Flipkart is also emphasizing on internal development of its existing talent.

The company is also merging procurement for all functions such as media buying, promotions, IT, supplies and warehousing based on the assumption that the centralized unit will be in a better position to negotiate deals with vendors rather than multiple teams doing so individually.

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