E-commerce major Flipkart has tightened its purse and will not be doling out any increment for the top 30 per cent of employees for the January-December 2022 performance development cycle this fiscal, according to internal communication sent out to the employees.
The move impacts around 4,500 employees in grade 10 and above.
Flipkart Chief People Officer Krishna Raghavan in an email informed employees about the decision.
"Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees' best interest in mind," Raghavan said. A company employee, on condition of anonymity, said that given the current situation, people will continue to have job security at Flipkart.
The employee said that the communication has been with respect to the performance development cycle of January 2022 to December 2022 for which the payout is generally made by March.
When contacted, Flipkart spokespersons said about 70 per cent of the employee base will continue to get an increase in their compensation.
"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 programmes, regular promotion cycles, wealth creation for ESOP holders, and enhanced benefits, including medical insurance," the spokesperson said.