The global tech sector is facing a bloodbath with more than three lakh people laid off so far, and giants such as Twitter and Meta reportedly looking at further job cuts. Although Indian IT firms have been resilient, new age digital startups have slashed their workforce, leaving more than 22,000 people unemployed. As Amazon's senior staff face a 50 per cent drop in payouts on stock options, 5,000 Flipkart employees won't get a pay hike this year.
The Walmart-owned Indian e-commerce startup informed its staff through an email, that those above Grade 10 will miss out on increments. At the same time stock options and bonuses won't be held back this year, while the firm cuts costs. Flipkart cited the persisting macroeconomic uncertainty, and described the move as a way to manage resources in a prudent manner.
Eligible employees will be able to create wealh by exercising ESOPs, while health insurance among other benefits won't be affected. Flipkart is also reportedly planning to buy back stock options worth $700 million, as it seeks separation from PhonePe.
Although Walmart has reportedly fired hundreds of corporate employees globally, but Flipkart makes up a bulk of its international sales and has been delivering positive margins. Flipkart's peers in the startup ecosystem, Swiggy, Zomato and Byju's have all been hit by the layoff wave. Its rival Amazon's employees have received lower returns from restricted stock options, because the firm's stock dropped by 35 per cent.
