Daily Management Review

Walmart-Owned Indian E-Commerce Giant Flipkart Assures No Job Loss Or Salary Cuts


Walmart-Owned Indian E-Commerce Giant Flipkart Assures No Job Loss Or Salary Cuts
Walmart-owned largest e-commerce company of India Flipkart has assured that it will now slash salaries of employees and will honour the job offers extended even in the face of business disruption because of the coronavirus pandemic spreading across the country.
More than 8,000 employees of the e-commerce major participated in the virtually conducted quarterly results because of the nationwide lockdown due to the coronavirus pandemic.
The company reassured employees about its commitment to them, as well as vendors and seller-partners. This was communicated by the CEO of the Flipkart Group Kalyan Krishnamurthy, said reports quoting sources.
He also said there would be no pay cuts and the company will honour all job offers made, including those for internships.
"A crisis is a great time to show your statesmanship, commitment and character. This is the time to contribute to nation building...We are honouring all commitments, campus placements and also looking at innovative ways of virtual inductions and onboarding," he was quoted as saying.
In order to protect themselves and their families from the virus pandemic, employees should follow the safety measures advised by the government, stressed Krishnamurthy,
There was however no official comments available from Flipkart.
Since the Indian government has announced a 21 day national lockdown on March 24 to curb the spread of the novel coronavirus in India, most of the e-commerce companies in the country have been struggling to deliver orders.
Despite the government announcing exemption from the lockdown for delivery of essential goods including food, pharmaceuticals and medical equipment through the e-commerce format, a number of e-commerce companies of the country had complained that its delivery staff were being harassed and stopped by the police.
The delivery operations of the e-commerce companies were disrupted because of the shutting down of warehouses by the local authorities in various states in India as well as preventing goods laden trucks from state borders. Since then however things have smoothened a bit and e-commerce companies have started operations and are struggling to see off all the pending orders.
Last week, their operations were temporarily stopped by Flipkart and started them again on the same day after getting an assurance from relevant authorities about the safe passage of its supply chain and delivery executives, particularly elimination of restrictions imposed by local law enforcement authorities. However, the online platform of the company still shows a shortage of many of the household items.
There were concerns that e-commerce companies could resort to salary cuts and even retrenchment to contain costs because of the disruption of their businesses due to the national lockdown. Recent reports of a number of companies, including tech firm, have already cut down salaries of employees as there were no business inflow due to the virtual halt of global business due to the coronavirus pandemic.
With a growing demand for online groceries because of the national lockdown, Indian online grocery firm Bigbasket announced the hiring of about 10,000 people for its warehouses and for last-mile delivery in order to cater to the increased demand and clear off pending orders fast.