Walmart-Owned Flipkart Lays Off 400-500 Employees Following Appraisals

The Walmart-owned e-commerce firm, Flipkart has laid off about 400–500 employees after its annual performance review process, according to a report by The Economic Times citing people familiar with the matter.

The reductions account for roughly 3–4% of the company’s workforce, higher than the usual 1–2% of employees identified as bottom performers during its yearly review cycle. Flipkart employs about 20,000 people, meaning the latest exits affect around 1.5% of the total workforce.

A similar exercise was undertaken by Flipkart during its annual review cycle in early 2024.

In a statement, the company said the changes were part of its standard performance management process.

“Flipkart conducts regular performance reviews aligned with clearly defined expectations. As part of this process, a small percentage of employees may transition from the organization. We are supporting affected employees with transition support.”

A person familiar with the matter told that the number of employees placed on performance improvement plans this year exceeded the typical average. Many of those employees received a one-star rating and were subsequently asked to leave.

Financial performance

Financial filings show the marketplace arm of Flipkart, Flipkart Internet Pvt. Ltd., reported a consolidated net loss of INR 14.94 billion in FY25 from INR 23.59 billion in FY24, according to data from Tofler. Revenue increased 14% to INR 204.93 billion in FY25 from INR 182.42 billion a year earlier, helping reduce overall losses.

However, the 14% growth rate marked a slowdown compared with FY24, when operating revenue increased 21%, the second consecutive year the company recorded growth above 20%.

Flipkart’s India business operates through several entities, with Flipkart Internet Pvt. Ltd. running the marketplace. The unit generates revenue primarily through seller commissions, advertising income, and fees for seller services.

Business updates

Despite the layoffs, Flipkart has continued expanding its services. In August 2024, the company launched its quick-commerce platform Flipkart Minutes, entering the fast-growing rapid delivery segment.

The layoff reflects the broader pressure on technology companies to reduce costs and move toward profitability. Over the past few years, many startups and tech firms have undertaken layoffs as they shift from rapid expansion to efficiency and sustainable growth. While companies previously prioritized scaling and market growth, they are now seeking to optimize operations and reduce costs.