A few days back Flipkart bought Jabong for $70 Million cash and now a new News comes up saying that Flipkart is firing hundreds of its employees. Flipkart is cutting down heavily on poor performers, Around 700 to 1,000 of the employees will be soon handed the pink slip, They will be either asked to resign or given severance pay.
In a report on TOI An employee at a Flipkart’s Noida office said he was stunned when he was suddenly handed over a new set of performance goals, which were tough to meet. A week later, he, along with some 150 others, were asked to leave the company for non-performance.
Employee also added that “It was impossible to meet those new parameters. The irony is, we had great appraisals a few months ago.”
In a statement, the company said that employees who do not make progress, despite being put on a performance improvement plan must seek other avenues where their skills can be better utilized, the ET report revealed.
It is also believed that the extreme step was taken after the company faced valuation slash down by Morgan Stanley and a trouble in gaining more funds from the investors who have now started worrying about returns.
How can there be 1000 employees as bottom performers? Can this be correlated to the senior exits as well?
With a staff of 30,000 people, it has one of the largest work forces among Indian e-commerce firms.