Flipkart Asks Hundreds Of Employees To Exit During Performance Reviews As IPO Preparations Continue

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Flipkart Confirms Employee Exits During Performance Review Cycle

Walmart owned ecommerce company Flipkart has reportedly asked around 300 to 400 employees to leave the organisation as part of its annual performance review cycle.

The development was first reported by The Economic Times and involves employees placed in lower performance bands during the company’s appraisal process. These employees were asked to exit as part of Flipkart’s internal performance management framework.

Flipkart acknowledged that employee exits do occur during the review process but did not confirm the exact number of employees affected.

In an official statement, the company said that regular performance reviews are conducted against clearly defined expectations and that a small percentage of employees may transition out of the organisation. Flipkart also stated that it is providing transition support to affected employees.

A Workforce Of Around 20000 Employees

Flipkart is estimated to employ around 20000 people across multiple teams and business units.

Reports indicate that the employees impacted in the latest cycle came from different departments across the company. Performance based exits during annual reviews are not uncommon in large technology companies where appraisal cycles often determine promotions, bonuses, or in some cases employment continuity.

A Similar Move Happened In 2024

This is not the first time Flipkart has carried out such an exercise.

In early 2024, the company asked around 1000 employees to leave after its performance review cycle. At the time, this represented nearly five percent of the company’s workforce.

The recurrence of such exits during annual reviews reflects a broader shift in how large internet companies are managing costs and operational efficiency.

Why Efficiency Has Become A Priority

Over the past few years, many internet and startup companies have been moving away from aggressive expansion toward stronger financial discipline.

The global funding slowdown and investor pressure for profitability have pushed companies to optimise teams, reduce costs, and tighten performance expectations.

Flipkart, like several large technology companies, has been focusing on improving operational efficiency while maintaining growth in India’s highly competitive ecommerce market.

IPO Conversations Are Also Underway

The timing of the development is notable as Flipkart continues early preparations for a potential public listing in India.

Reports suggest that the company has begun preliminary discussions with investment banks including Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Kotak Mahindra Capital to explore the feasibility of a future IPO.

While the listing timeline has not been officially confirmed, the company’s focus on efficiency and disciplined operations is seen as part of broader preparations for entering the public markets.