Flipkart Under Fire Over Alleged Forced Performance Ratings, Minimal Severance, and Employee Exit Pressure

Flipkart is facing scrutiny following a series of anonymous employee allegations posted on workplace discussion platform Blind, where users claimed the company manipulated performance ratings and pressured employees to resign with limited severance benefits.

The claims, which remain unverified, suggest that long-serving employees were allegedly assigned unfavourable performance evaluations despite positive feedback, potentially as part of a broader cost-control effort.

Long-Tenured Engineers Allegedly Asked to Exit

One widely shared post describes the experience of an employee claiming nearly a decade of tenure at Flipkart. According to the account, two engineers who had reportedly received positive managerial feedback were subsequently assigned an MSE (Meets Some Expectations) rating, typically viewed internally as a low-performance classification.

“Been at Flipkart 8 to 9 years, two engineers had good feedback at me level but forcefully given MSE, asked to leave with peanuts as severance,” the employee wrote.

The employee alleged that the affected staff members were encouraged to resign soon after receiving the revised ratings and were offered what was described as minimal severance compensation.

“Nothing in name of severance… fabricating performance issues forcing immediate signatures under duress,” the post further claimed.

The post also alleges that employees were asked to sign legal documents waiving their right to pursue future legal action against the company, a claim that, if substantiated, could raise questions about whether consent was freely given.

Alleged Cost Pressures Linked to Walmart Board Expectations

In the same discussion thread, the anonymous employee also provided what they described as a broader business context behind the alleged actions. The post claimed that Flipkart’s Annual Operating Plan (AOP) was rejected by the board of parent company Walmart, reportedly for the first time, after management proposed significant spending to drive growth.

According to the account, leadership was instead asked to pursue growth with tighter cost discipline. The employee alleged this led to a sharp increase in employees placed under Performance Improvement Plans (PIPs), reportedly rising from around 5% of staff to nearly 20%.

The anonymous post further claimed that the objective was to reduce headcount ahead of an internal April deadline tied to variable bonus payouts.

"Saving on variable bonus money forcing good people out [by the] April 3rd deadline. Nothing in name of severance. Fabricating performance issues forcing immediate signatures under duress," the employee wrote.

Key Allegations at a Glance

The anonymous posts collectively raise the following allegations:

• Employees with positive feedback allegedly downgraded to low performance ratings
• Severance packages are described as minimal or inadequate
• Staff reportedly pressured to sign legal waivers during exit discussions
• Significant increase in Performance Improvement Plans (PIPs)
• Performance concerns were allegedly created to justify workforce reductions

These claims have not been independently verified.

Industry Context and Potential Implications

Flipkart, one of India’s largest homegrown e-commerce platforms and a Walmart subsidiary, has been operating amid increasing pressure across the global technology sector to prioritise profitability over aggressive growth.

As investor sentiment shifts away from high cash-burn strategies, technology companies worldwide have intensified cost optimisation efforts, including restructuring and workforce rationalisation.

If accurate, the allegations could raise concerns under Indian labour frameworks, particularly around agreements signed under potential pressure or without adequate negotiation opportunity.

Note: The allegations in this article are based on anonymous posts on the Blind platform and have not been independently verified. They represent the views of the individuals who posted them and should be interpreted cautiously until independently confirmed or officially addressed by Flipkart.