FlipKart denies move to eliminate 1,000 jobs

Flipkart online shop
Indian e-commerce player FlipKart today denied media reports that said the company will be laying off 700-1000 employees on account of poor performance.

“Flipkart denies all allegations of a lay-off,” a company spokesperson said in a statement.

Earlier, media reports said that under-performing employees — 700-1000 in number — will be given the option to resign or hand over the pink slip.

“At times, we have employees who do not meet the performance bar. In those situations, we work closely with employees to enable them improve their performance. In due course, if these employees are unable to make the desired progress, they are encouraged to seek opportunities outside the company where their skills can be better utilised,” the spokesperson added.

“As a performance-oriented organisation, we follow a transparent evaluation process,” the statement said.

This week, Flipkart-owned Myntra announced acquiring e-store Jabong from its London-based owners Global Fashion Group (GFG) for $70 million (Rs 471 crore) to consolidate its position in the fashion and lifestyle segment both operate in.

Flipkart acquired Myntra in May 2014 for an estimated $300 million.

“Jabong’s acquisition is a continuation of our group’s journey to transform commerce in India. We will offer a variety of styles, products and assortment of global and Indian brands,” said Flipkart co-founder and Chief Executive Binny Bansal in the statement.

As fashion and lifestyle is a major driver of e-commerce growth in the country, Bansal claimed Myntra’s strong performance had reinforced faith in the segment.