Flipkart asks about 500 employees to leave: What the company has to say

Flipkart has reportedly asked about 400 to 500 employees to leave the company this year, citing low score in annual performance cycles. Citing sources familiar with the matter, The Economic Times reported that this number represents 3-4% of the company's employee base, and is higher than the usual 1-2% of the bottom performers that the company lets go every year.

The ‘performance’ factor behind the ‘layoffs’

The report says that an unusually high number of employees have been placed on a Performance Improvement Plan (PIP) this year, and many of those who have been asked to leave reportedly received a “one-star” rating – the lowest possible – during their annual reviews.“It's not happening in other companies of the group,” the source told ET.

What Flipkart has to say

In a statement addressing the departures, a Flipkart spokesperson told ET that the move is a standard part of the company's operational hygiene.

“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,” a spokesperson was quoted as saying.The layoffs come at a time for the Walmart-owned company. While Flipkart has been successful in cutting its losses, its growth appears to be showing signs of cooling down.

Going by the numbers (FY25), the revenue was Rs 20,493 crore, which is up 14% year-on-year. The losses reduced by 37% to Rs 1,494 crore. The 14% growth rate in 2025 is a notable drop from the 21% growth seen in 2024, the report said.Meanwhile, the traditional marketplace growth slows even as Flipkart is pivoting its focus toward faster delivery. In August 2024, the company launched Flipkart Minutes, its quick-commerce arm designed to compete with players like Blinkit and Zepto.