New Delhi: Amid ongoing layoffs in tech companies, e-Commerce giant Flipkart has announced to restrict salary increments to only 70 per cent of its employees. The ‘difficult decision’ is expected to impact the 4,500 staff of the company. In an e-mail to employees, Flipkart stated that senior leaders who are at Grade 10 and above levels won’t get any hikes.
Grade 10 and above includes roles as diverse as managers to vice presidents. However, the Walmart-owned company would release the bonus payouts as planned for the employees. Notably, the company’s annual appraisals have been completed and the increments are expected to kick in from April 1, said reports.
No Increment For 4,500 Employees – Flipkart’s Full Statement
“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,” it said.
Read More: After 18000 Layoffs, Amazon Employees to Face Salary Cut by 50 per cent in 2023: Report
Layoff Saga Continues
This comes on the heels of what has been described as big tech layoffs. In the past few months, thousands of employees were laid off by tech giants like Amazon, Meta, Microsoft and Google. Additionally, unicorns like Byju’s, and Swiggy have also handed over pink slips to tech workers as part of cost-cutting and restructuring measures.
