Over 5000 Flipkart employees may not get salary hike this year 

By India Today Technology deskFlipkart, a popular e-commerce company, has decided to roll out salary increments to only 70 per cent of its employees this year. This means that around 5,000 of its staff will not be getting a raise. The decision was communicated through an email to employees at Grade 10 and above levels. The company said that the employees who are at Grade 10 or above will not get any salary hikes. However, bonuses and employee stock options will still be given out as planned. Flipkart has already completed its annual performance evaluations, and the salary increments are set to begin on April 1. This decision was made at a time when many tech companies are trying to cut costs to increase their profits.

As per a Money Control report, senior Flipkart staff will not be getting a raise this year. The company has said in a statement that it wants to be prudent and manage its resources well.“Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interests in mind. In line with this, about 70 percent of our employee base will continue to get an increase in their compensation,” Flipkart said in a statement.

“Additionally, our stock option allocation and bonus exercise will continue as is for those who are eligible. We stay committed to enhancing value for all our employees through employee-centric policies, continued skilling and training programs, regular promotion cycles, wealth creation for ESOP holders, and enhanced benefits, including medical insurance,” the report said.
The report further reveals that Flipkart plans to buy back employee stock options worth $700 million. This is part of its strategy to completely own PhonePe, a popular payment app in India. The move is also aimed at retaining and hiring talent, particularly during a time when many startups in the country are laying off employees due to funding difficulties.

The buyback is expected to happen after the separation of Flipkart and PhonePe is finalized in the next few months. Walmart, which owns Flipkart, reported a 72 per cent drop in operating income for its international business in the quarter ending January. This was mainly due to the reorganization of Flipkart and PhonePe as separate businesses.
Despite this, Flipkart’s contribution margin is positive and has been expanding. It makes up a significant portion of Walmart’s international e-commerce sales. This was announced by top executives of Walmart during an earnings call earlier this week, the report states.