Flipkart is moving ahead to show an exit door to underperformers, this could be easily marked as the biggest lay off of the year. According to a source close to the development, company has asked its employees, who failed to meet the company’s expectations, to either submit their resignation or to be sent off with severance pay.
This decision will impact around 700-1000 employees and will also state the current situation of startup sector which is still chalking its design that will balance its cost effectiveness and growth. The source further stated that the clean-up process is just a regular part of the organization to make it leaner.
The move, while not unique to Flipkart, is reflective of the challenging times for the online retail industry, as well as the company, which is attempting to find a balance between saving costs and chasing growth.
Though the evacuation figures look big, but practically, company is just laying off only 2.3 per cent of its workforce, accounting that it has a team of 30,000 employees working on its platform. What is raising eyebrows is also the fact that such occurrences are not common at Flipkart, which has expanded rapidly in recent years and tended to take a benign view of those at the bottom of the performance hierarchy.
Now, however, things have changed as CEO Binny Bansal strives to maintain the market leadership of India's most valuable startup while putting the company on a path to profitability. Flipkart came in for some criticism earlier this year after it deferred the joining dates for campus recruits from the Indian Institutes of Management.