Flipkart denies layoff reports, say ‘We do responsible hiring’
- ByStartupStory | March 27, 2023
Amidst the bleak economic environment, many leading companies are resorting to cost-cutting measures, including layoffs, which continue to be a concerning trend worldwide.
While many companies are resorting to layoffs to deal with the economic downturn, Flipkart, a major e-commerce player, has decided not to take that route. Krishna Raghavan, the Chief People Officer of Flipkart, affirmed to Livemint that the company had no plans to lay off any of its employees.
Krishna Raghavan emphasized that Flipkart practices responsible hiring and there are no large-scale layoffs happening at the company. He added that they don’t hire a massive number of employees and then realize later that they have an excess workforce, which leads to drastic measures.
According to the report, Flipkart’s move to refrain from providing salary hikes to senior executives will not result in any job losses.
Flipkart’s choice not to implement employee layoffs would undoubtedly be a source of relief for many of its staff members. In contrast, last week, Amazon, Flipkart’s competitor, disclosed its intention to lay off 9,000 of its employees in the following weeks, while IT giant Accenture also declared that up to 19,000 of its employees would be laid off.
During a recent earnings call, senior officials at Walmart, Flipkart’s parent company, revealed that Flipkart’s contribution margin remained positive and was continuing to increase. Walmart further stated that the investments made in infrastructure over the past three years were benefiting Flipkart. Moreover, there were reports that Flipkart co-founder Binny Bansal was exploring the possibility of investing approximately $100-150 million in PhonePe.
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