With co-founder Binny Bansal no longer at the helm of Flipkart, members of the group's C-suite are reportedly planning to head out too. With an organisational rejig in the offing, reports suggest that several senior executives at Flipkart Group have begun to look for job opportunities.
Walmart Inc, which acquired 77 per cent stake in Flipkart Group after a $16-billion deal, has already merged subsidiaries Jabong and Myntra and is now planning to club them with Flipkart. Changes in the organisational structure as a result of this merger could see several senior officials of the Flipkart Group quitting the company. As of now, as many as 20 top executives have contacted headhunters to change companies, a report by The Economic Times said.
The probable merger of Jabong and Myntra with their parent company could lead to duplication of profiles, which could lead to even more resignations in Flipkart's future, the report said.
Within two days of Bansal's exit, Delhi-based placement firm GlobalHunt has received as much as 10 resumes from Flipkart executives, Bengaluru-based The Head Hunters has begun initial interactions with as many as six of them, and Mumbai-based executive search firm Hunt Partners is also talking to executives from Flipkart looking for options, the report said.
Meanwhile, recruitment firm BTI Consultants has been approached by a few Flipkart senior executives with a fixed salary component of close to Rs 1 crore annually topped with at least 25% variables, the daily said. Senior executives leaving Flipkart could head over to other e-commerce firms, out of which hospitality company OYO and food delivery aggregator Swiggy are recruiting.
Experts, on the other hand, are divided on the impact these top-level exits will have on Flipkart. Flipkart would need the guiding hands of Binny Bansal and other top executives to stand its ground in its fight against Amazon, Pankaj Bansal of PeopleStrong told the daily. Whereas, on the other end of the spectrum, Korn Ferry India Chairman Navnit Singh believes that Flipkart has matured enough and Walmart is capable of guiding the Indian e-commerce major in a competitive market.
Flipkart has been going through a lot of turbulence lately, after group CEO and co-founder Binny Bansal had to resign over charges of serious personal misconduct. US retail behemoth Walmart, which acquired controlling stake in the e-commerce company, has initiated organisational reforms after Binny's exit.
As the first of these reforms, Flipkart's subsidiaries Jabong and Myntra have been merged into a single entity. Jabong is also planning to sack almost half of its workforce in order to streamline operations and save costs.
Edited by Vivek Punj