BUSINESS

Flipkart Denies Layoff Reports, Says Will Hire 10,000 Temp Staff For Festive Season

Media reports had claimed Flipkart was mulling a second round of layoffs after July staff cuts.

12/09/2016 10:44 AM IST | Updated 12/09/2016 2:05 PM IST
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Denying recent media reports of 800 staff cuts, e-commerce major Flipkart has said it plans to ramp up its delivery and logistics service with 10,000 temporary hires to meet the demand from the festive season.

The move is part of aggressive festive season preparations by e-commerce majors such as Flipkart, Amazon and Snapdeal as they launch big sales events to boost their revenues in what is shaping up to be a crucial make-or-break season for them.

Flipkart Chief Administrative Officer Nitin Seth said the new hires are in line with its business goals as the company continues to hire talent in key strategic areas, and there are no plans for layoffs in any team in the coming months.

In July, Flipkart sacked up to 1,000 "under-performing" employees. Last week, media reports had said the company will cut an additional 800 staff in its tech and corporate teams, in a second round of layoffs.

"We completely and unequivocally deny any layoffs at Flipkart in the coming months," Seth has said.

The company hasn't disclosed how many staff it asked to leave in July, but last month, in an unusually candid admission, Flipkart co-founder Sachin Bansal defended the staff cuts in a townhall meeting saying even the top leadership, including himself, had had a price to pay for missed targets.

Flipkart's rival Snapdeal also expects creation of 10,000 temporary jobs at the company between September 15 to November 15, with the positions mostly being in logistics to ensure smooth deliveries.

The Festive Battle

As the festive season nears, the competition among e-retailers is set to heat up with players vying to outdo each other's sales events. Amazon India is planning its "Great Festive Sale" in early October while rival Flipkart is planning its "Big Billion Day" event.

Amazon India is expected to spend two-three times more money in marketing and advertising while Flipkart is pushing for better customer experience, said an Economic Times report.

According to Mint, Amazon India's sales in August exceeded that of rival Flipkart for the a second month in a row. Amazon posted gross sales of about ₹2,100 crore, thanks in part to its three-day sales event Great Indian Sale, during which Amazon offered free smartphones and deep discounts, Mint said citing sources.

With PTI inputs

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