Flipkart, according to a report in Economic Times, has told its employees that the top 30% of the staff, which includes the top leadership, will not be eligible for appraisals this year as the ecommerce giant is battling tough macroeconomic conditions. The report quotes an internal note sent by Flipkart‘s chief people officer Krishna Raghavan.
The reason behind the no pay hike
Flipkart said that the move aims to better use its resources.The chief people officer Raghavan in the internal note to employees said that the company wanted to be “prudent” in managing its resources amid tough macroeconomic conditions. “At Flipkart, we have always attempted to balance employee and org priorities, with our action being driven by what is right for our people. Nevertheless, we do need to be extremely prudent in managing our resources, keeping in mind the dynamic external environment and the fluidity with which the current circumstances are continuously changing,” he said.
Employees who will get salary hikes
“In the upcoming compensation planning cycle, we will be prioritising employees at Grade 9 and below, ensuring that we are able to provide 70% of all Flipkart employees an increase in their compensation,” Raghavan said.
Parent company Walmart happy with Flipkart
Flipkart’s parent company Walmart recently said during its earnings call that it is happy to see the e-tailer expand on its positive contribution margin. Walmart CFO John David said that the investment into Flipkart’s infrastructure over the last three years is paying off.
The reason behind the no pay hike
Flipkart said that the move aims to better use its resources.The chief people officer Raghavan in the internal note to employees said that the company wanted to be “prudent” in managing its resources amid tough macroeconomic conditions. “At Flipkart, we have always attempted to balance employee and org priorities, with our action being driven by what is right for our people. Nevertheless, we do need to be extremely prudent in managing our resources, keeping in mind the dynamic external environment and the fluidity with which the current circumstances are continuously changing,” he said.
Employees who will get salary hikes
“In the upcoming compensation planning cycle, we will be prioritising employees at Grade 9 and below, ensuring that we are able to provide 70% of all Flipkart employees an increase in their compensation,” Raghavan said.
Parent company Walmart happy with Flipkart
Flipkart’s parent company Walmart recently said during its earnings call that it is happy to see the e-tailer expand on its positive contribution margin. Walmart CFO John David said that the investment into Flipkart’s infrastructure over the last three years is paying off.
“In India, Flipkart continued its strong momentum through Diwali and other seasonal events. We are particularly pleased to see Flipkart’s positive contribution margin expanding. PhonePe’s recent valuation that Doug talked about was supported by annualised TPV, reaching more than $950 billion, about 50% higher than just one year ago, while also exceeding more than 4 billion monthly transactions,” said Walmart CEO Doug McMillon
Late last year, both Flipkart and PhonePe formally announced their separation and the latter has raised $450 million in new funding since then.
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