Has the e-commerce boom in India come to a standstill? Flipkart, one of the biggest e-commerce players in the country, has reportedly missed its targets, seen exit of top executives and undergone a management reshuffle as well as layoffs. However. the changes are happening from the top down. Flipkart s co-founder Sachin Bansal acknowledged that he was removed as CEO in January this year due to poor performance. Bansal added the company will be using same yardstick for the performance scrutiny. Also Read - iPhone 11, iPhone XR up for grab with massive discount on Flipkart Big Saving Days saleAlso Read - Flipkart Big Saving Days sale begins: Pixel 4a, Realme X7, Samsung Galaxy F62, more on discount
Sachin Bansal was replaced by Binny Bansal as the new CEO of the company. Just look at who was management six months ago, one year ago, and who is management today. It s completely changed. Right? Yeah, I mean, nobody is here. I have changed. I was the CEO and I have changed. It was performance linked, FactorDaily quotes Sachin Bansal as telling employees at the townhall meeting last week. Also Read - Flipkart Big Saving Days smartphone deals: Pixel 4a is star of the show once again
The comment comes in the wake of reports that Flipkart was planning to lay off at least 200 employees. Last month a few reports claimed that Flipkart is planning to lay off at least 700 employees or about 3 percent of its workforce. But some report said the number could be as high as 1,000. The reports of layoff is certainly sending tremors among Flipkart employees even as Flipkart is trying to play it cool with portraying that even top executives performances are being assessed.
Flipkart, which once dominated and led the e-commerce segment, is now facing a stiff competition from Amazon. The US-based e-commerce company has made some huge investments in its India arm. Back in June, Amazon announced a whopping $3-billion (Rs 20,000 crore) investment in India taking the total investment to $5 billion. While announcing the figures for second quarter of 2016, the company extensively talked about importance of India.
“We really like our team there.We have a great team of Amazonians who’ve been very inventive in India. Every time there’s an obstacle or something that’s different from the US or another major business, they’ll invent around it, whether it’s a shipping method or a payment method or whatever,” CFO Brian Olsavsky was quoted as saying.
While Amazon seems bullish about India, Flipkart on the other hand has been struggling to cope with the massive pressure. Back in May, Flipkart s valuation was reported to have dipped from $15.2 billion to $9.5 billion in the last few months, making it equivalent to the valuations two years ago.
But it s not just ever-increasing competition from the likes of Amazon. The company has also seen some high profile exits in last few months. In February this year, Mukesh Bansal left the company as head of commerce and advertising platform. Ankit Nagori departed as Chief Business Officer while Punit Soni who was spearheading the product and strategy also departed. Head of seller business Manish Maheshwari parted ways from the company in April this year. ALSO READ: Here s Mukesh Bansal s farewell letter to employees post his resignation from Flipkart
That said, it may not be all over for the company as it is still one of the dominant forces in the market. With the ongoing restructuring and cost management, the company may finally restore its supremacy in the market, and take on Amazon. But it will certainly won’t be a cakewalk.