Flipkart undertakes management rejig amid resignations, high costs: Report
Flipkart, the e-commerce giant owned by Walmart, has reportedly reshuffled executives at the vice-president level in some categories. According to a report in The Economic Times (ET), Ravish Sinha, senior VP at the firm has resigned. Sinha was in the company for 8 years and was the VP of engineering before taking up the role of SVP of supply chain.
The changes were notified to the employees of the firm via an internal note on January 30. According to an executive, the company undertakes the reshuffle at VP level every three years. This allows executives to head different businesses. Many of those shifted to other roles have already assumed responsibilities.
According to ET, Jagjeet Harode, who was VP of marketplace, is now taking charge of the large appliance business unit. He will be reporting to Hari Kumar, who heads the electronics category.
Rakesh Krishnan, vice president of electronics, will replace Harode to oversee the marketplace business.
The company is also struggling with a cash crunch. In February, it announced that there will be no increment for top 30 per cent employees for January- December 2022 period. It is expected to impact 4,500 employees.
"Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees' best interest in mind," Flipkart Chief People Officer (CPO) Krishna Raghavan told the employees in an email.
The company has also reportedly scaled down its grocery delivery service, Quick. It will now just focus on delivering fresh groceries.
"Flipkart Quick is not shutting down; it has scaled down from a few cities and continues in a couple of cities as we build a sustainable business model in Quick commerce that is centred around fresh grocery," the company told ET.