2024 lay offs: E-commerce platform Flipkart is set to reduce its workforce by 5-7 per cent on the basis of employees' annual performance, according to media reports. This move is aimed at better cost control as the company has halted fresh hiring over the past year.

Flipkart is reportedly planning a performance-driven workforce reduction of 5-7 per cent, which constitutes to 1,100-1,500 employees as part of a cost control strategy. The initiative, expected to conclude by March-April 2024, follows a year of hiring freeze. Flipkart has been trimming jobs annually based on performance for the past two years.

The company's current workforce stands at 22,000, excluding Myntra. The restructuring, along with the 2024 roadmap, will be finalised at a senior executives meeting next month, the report suggests. Despite the cutbacks, the company's plan to delay its IPO until 2024 remains unchanged.

The company is finalizing a $1 billion financing round, including contributions from Walmart and other investors.

Other firms like Paytm, Amazon, and Meesho have also undertaken cost-cutting and restructuring recently. Flipkart is also considering collaborations with Cleartrip, where Adani Group owns a 20 per cent stake.

Cleartrip, which focuses on airline bookings, might see increased investment from Flipkart in its hotel business. The ongoing $1 billion funding from Walmart and others is anticipated to support Flipkart's strategic plans.