E-commerce company Flipkart has asked around 400 to 500 employees to leave the organisation this year following performance reviews, according to multiple sources familiar with the matter. The move represents about 3 to 4 per cent of the company's total workforce. Typically, Flipkart removes around 1 to 2 per cent of employees annually based on performance. However, this year's figure is reported to be significantly higher.
Responding to queries, the company said, "Flipkart regularly conducts performance reviews, and these are measured against specific expectations. In this process, a small portion of the organisation has to leave the company. We are providing transition support to the affected employees."
Performance reviews and PIP process
According to a person familiar with the development, more employees than usual were placed under the Performance Improvement Plan (PIP) this year. The source said that several employees received "single star" ratings during annual evaluations and were subsequently asked to leave the organisation.
The person added that similar developments have not been widely reported in other companies within the Flipkart Group. Sources indicated that the performance review cycle led to a higher-than-usual number of exits in the company's main marketplace operations.
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Financial performance and business operations
Despite the job cuts, Flipkart's marketplace arm, Flipkart Internet, reported revenue growth in the 2025 financial year. The division recorded operating revenue of Rs. 20,493 crore, which is about 14 per cent higher than the previous year. At the same time, the company's net loss declined by around 37 per cent.
However, the pace of growth has slowed compared to the previous financial year. In FY2024, Flipkart Internet's operating revenue had increased by approximately 21 per cent.
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Flipkart operates in India through multiple corporate entities. Among them, Flipkart Internet runs the company's main marketplace platform. This unit primarily earns revenue from seller commissions, advertising, and service-related fees charged to sellers.
The company has also been expanding into new segments. In August 2024, Flipkart launched its quick commerce service, Flipkart Minutes, aimed at delivering products within a short time frame.
