NEW DELHI: E-commerce giant Flipkart has decided not to give increments for top 30% of its employees for January-December 2022 performance development cycle, as per internal communication sent out to the employees. The move is likely to impact nearly 4,500 of its employees in grades 10 and above.
“Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interest in mind,” Flipkart chief people officer Krishna Raghavan, in an email, informed employees about the decision.
According to a Flipkart employee, the communication has been concerning the performance development cycle of January 2022 to December 2022 for which the payout is generally made by March. This step by Walmart-owned Flipkart comes as major tech companies around the world continue to slash their workforce citing bleak outlook.
In India, unicorn firms such as BYJU’S, OLA, OYO and Unacademy have in recent months given the pink slip to a significant number of their employees. According to some estimates, more than 70 startups laid off over 20,000 employees in the last 3-4 months.
When contacted, Flipkart spokespersons said about 70% of the employee base will continue to get an increase in their compensation. “Additionally, our stock option allocation and bonus exercise will continue as is for those who are eligible,” the spokesperson said.