Flipkart Lays Off 250–300 Employees Amid Performance Review and IPO Preparations

Indian e-commerce giant Flipkart, backed by global retail leader Walmart, has reportedly laid off around 250–300 employees as part of its annual performance review process. The move represents a small portion of the company’s workforce but comes at a crucial time as the company prepares for a potential public listing in India. Alongside restructuring, Flipkart is also adjusting its business strategies, introducing new fee structures, and expanding into quick commerce to compete with rivals such as Amazon India and Meesho.

Flipkart Lays Off 250–300 Employees as Part of Annual Performance Review

Workforce Reduction Impacts Around 1.5% of Employees

E-commerce major Flipkart has reportedly laid off approximately 250–300 employees across various business divisions. According to sources familiar with the development, the layoffs represent roughly 1.5% of the company’s total workforce, which currently stands at nearly 20,000 employees.

The job cuts are said to be part of the company’s regular annual performance review process rather than a large-scale restructuring exercise. Flipkart periodically evaluates employee performance to ensure alignment with organisational goals and productivity standards.

A spokesperson for the company confirmed that the e-commerce platform conducts regular performance assessments based on clearly defined expectations. As part of this evaluation process, a small percentage of employees may transition out of the organisation each year.

Apart from the annual review cycle, Flipkart also conducts a mid-year performance check-in to monitor employee progress and ensure that teams remain aligned with the company’s evolving business objectives.

Previous Layoffs and Workforce Optimisation

This is not the first time Flipkart has implemented performance-based layoffs. In January 2024, the company carried out a significant workforce reduction, letting go of around 1,000 employees, which accounted for approximately 5% of its workforce at the time.

Such workforce adjustments have become increasingly common among technology and e-commerce companies globally as they aim to optimise operational efficiency, reduce costs, and focus on sustainable growth.

For Flipkart, maintaining a lean workforce while continuing to innovate in a competitive e-commerce environment remains a key priority.

Flipkart Moves Closer to Its Long-Awaited India IPO

NCLT Clears Proposal to Shift Domicile to India

One of the most significant developments for Flipkart recently has been progress toward its long-anticipated public listing in India.

In December, the National Company Law Tribunal approved Flipkart’s proposal to shift its corporate domicile from Singapore to India. This move removed a critical regulatory barrier and paved the way for a potential domestic initial public offering (IPO).

The relocation is considered a strategic step that will allow Flipkart to align its corporate structure with Indian regulatory frameworks and investor expectations.

Financial Performance Shows Strong Growth

As the company prepares for a potential IPO, Flipkart has been focusing on strengthening its financial performance by reducing losses and sustaining revenue growth.

In the financial year FY25, Flipkart Internet the company’s core marketplace entity reported a 14% year-on-year increase in revenue, reaching ₹20,493 crore. At the same time, the company successfully reduced its losses by 37%, bringing them down to ₹1,494 crore.

In the previous fiscal year (FY24), Flipkart had already recorded a 26% rise in revenue, indicating consistent growth despite the gradual slowdown in India’s broader e-commerce market.

The company is also restructuring its global holding structure by consolidating eight overseas entities into its Bengaluru-based parent company.

However, the process still requires regulatory clearance under India’s Press Note 3 guidelines because Chinese technology giant Tencent continues to hold nearly a 5% stake in Flipkart.

Flipkart Adjusts Seller Fees Amid Growing Competition

Zero Commission Model for Products Under ₹1,000

To stay competitive in India’s fast-evolving online retail landscape, Flipkart has been revising its seller fee structure.

In November, the company introduced a zero-commission policy for products priced below ₹1,000. Traditionally, sellers on e-commerce marketplaces pay a commission fee calculated as a percentage of the product’s final selling price.

By removing this fee for lower-priced products, Flipkart aims to attract more sellers and expand its catalog of affordable goods.

Interestingly, rival platform Amazon India recently announced a similar initiative, highlighting the intensifying competition among e-commerce platforms in India.

Marketplace Revenue Model

Flipkart’s marketplace arm generates revenue primarily through seller commissions, advertising fees, and other service charges imposed on sellers using its platform.

These changes in commission structure are designed to encourage small businesses and independent sellers to list more products on the platform while boosting customer engagement.

Flipkart Expands Quick Commerce with ‘Flipkart Minutes’

Plans to Launch 1,000 Dark Stores

Another key growth area for Flipkart is quick commerce. The company is aggressively investing in its new rapid-delivery platform called Flipkart Minutes.

Quick commerce focuses on delivering groceries and daily essentials within minutes, a segment that has been growing rapidly in India due to rising consumer demand for convenience.

According to company executives, Flipkart plans to expand its network of dark stores micro-fulfilment centres used to process quick deliveries—to around 1,000 locations by March–April.

Expansion Across Cities and Pincodes

Currently, the quick-commerce network already covers nearly 3,000 pincodes across 32 cities in India.

The company plans to accelerate its expansion and extend its services to approximately 75–80 cities in the near future. This aggressive scaling strategy is aimed at strengthening Flipkart’s position in the highly competitive quick-commerce sector.

Conclusion

Despite a small round of layoffs affecting 250–300 employees, Flipkart continues to focus on long-term growth strategies. From preparing for a potential IPO and restructuring its corporate setup to introducing seller-friendly policies and expanding its quick-commerce operations, the company is actively positioning itself for the next phase of growth in India’s competitive e-commerce landscape.

As competition intensifies and consumer expectations evolve, Flipkart’s strategic moves will play a crucial role in determining its future market leadership.