Flipkart Takes Difficult Decision for its Employees Amid Cost-Cutting Measures

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Flipkart won’t be handing out  supplements to its elderly leadership in the Grade 10 and above order — that includes  places as different as — in a ‘delicate decision’ that’s likely to impact 500  labor forces. The company is purportedly trying to conserve cash and concentrate on profitability, said people familiar with the strategy of India’s largest e-commerce player. With hiring on the go-slow, the company isn’t prevailing on workers who wish to move to greener ranges to stay back moreover, they said.    “At Flipkart, we’ve always tried to balance hand and organisation precedents, with our  conduct being driven by what’s right for our people.

Given the current macroeconomic situation, we want to be prudent in managing our coffers while keeping our workers’ stylish interests in mind,” said Krishna Raghavan,  principal people officer, in a letter addressed to workers and reviewed by Business Standard. Flipkart has stoned it to concentrate on profitability in the ongoing backing downtime that has formerly pushed  numerous tech companies to cut costs and layoff  workers. Still, about 70% of Flipkart’s hand base is eligible for a pay hike.

Also, the company’s stock option allocation and  perk exercise will continue for the eligible  workers. This development comes near after Walmart’s Q4 earnings call where CFO John David Rainey said the global retail mammoth is pleased to see Flipkart’s positive donation  periphery expanding. “Anye-commerce or digital platform needs a structure that you can gauge at a low borderline cost. And that’s what Flipkart has done.

They’ve invested in that  structure over the last three times, so now we’re suitable to see that  donation profit continue to expand. So, we ’re agitated about that,” Rainey added. Flipkart Internet, Flipkart’s business arm, reported that its loss widened 51 per cent to ₹ 4362 crore in FY22.