If reports are to be believed, according to the latest one from Hindu Business Line, India's largest e-retailer Flipkart is planning to lay off 800 more employees. Flipkart plans to "out-place" half of these employees, while the other half will have to find jobs on their own.
The decision to sack these 800 employees was made soon after the first 400 employees were laid-off in July. However, this time, the lay-off will be done in a phased manner. The process has already been initiated and will end by December.
However, the company spokesperson denied that the exits would in such large numbers.
In July, Flipkart had offered its under-performing employees to either resign or be sent off with severance pay. This decision had impacted 700-1,000 employees. This also shows how the top officials have to take tough decisions in order to help the company grow.
With the entry of the new CEO, Binny Bansal looks like the company is looking to make more profit and is striving to keep its number one position intact.
As per reports, in April, Flipkart had started keeping a control on the discounts and salary increments while trying to increase the profits. It is striving to cut its monthly burn rate to $40 million from the about $ 80-100 million in the first half of 2016.
The last time when Flipkart had executed its plan of laying off employees in May 2013, nearly 10% of its workforce was affected.