Sachin Bansal, the ex-chief executive officer at e-commerce giant Flipkart on Friday made a candid revelation. During the company's monthly meeting, the 35-year-old said that his stepping down as the CEO was "performance linked."
During the meeting with about 200 employees at the company's headquarters in Bengaluru, Bansal aimed to address concerns of the employees regarding recent layoffs. He said that the top management was not spared either.
"Look at the top level around you. Everyone has changed. In fact even I am gone. Some of our targets have been missed and everyone, including the top management has paid the price," Bansal was quoted as saying by the Economic Times.
Bansal's candid confession comes at a time when the company is witnessing stagnating growth and is under pressure owing to stiff competition from rival Amazon. His admission seemed to have eased tensions, sources told the publication.
Recent exits from Flipkart
In the last few months, the e-commerce marketplace has seen the exit of its top management employees. Mukesh Bansal, who was considered the "right hand man" of Sachin and Binny Bansal, quit the company in February. Ankit Nagori, a long-time employee and Chief Business Officer at Flipkart, had quit around the same time, Business Standard reported.
Punit Soni, who headed the product and strategy department, left the e-commerce firm in April. Manish Maheshwari, the head of seller business also resigned from his position around the same time.
Downsizing and layoffs
In July, various media reports have said that the number of employees asked to leave ranged from 300 to 700. At 300, it constitutes about a per cent of Flipkart's overall workforce. The Economic Times said the number could be as high as 1,000 as part of an effort to make Flipkart a "lean" organisation, citing Flipkart sources.
The Binny Bansal-led firm has been striving for profitability. The firm has also been making rapid expansion plans in a bid to outdo its competitors such as Snapdeal and Amazon. Over the last few months, it has cut back on its discount offers, but this phenomenon is not specific to Flipkart alone.