Flipkart co-founder Sachin Bansal's revelation at a monthly meeting on Friday, that he was replaced as chief executive "because of performance", reportedly placated staff members upset about the recent downsizing at the company. The monthly meeting, attended by around 200 "Flipsters", was the first one held after the company laid off 700-1,000 employees. After eight years as CEO, Sachin was replaced by co-founder Binny Bansal and re-designated as executive chairperson.
"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," Sachin reportedly said.
His unusual admission is being viewed as an effort by the e-commerce company to win back employee trust and boost morale as it prepares for the important festival season next month, The Economic Times reported on Monday. Company officials said the meeting was heating up as staffers questioned why they had to bear the brunt of "poor management decisions".
Flipkart has had to fight its way through a series of valuation markdowns, high-profile executive exits and layoffs amid competition with global online retail leader, Amazon. With backing from its US parent, Amazon India has a larger budget in terms of marketing and discounts.
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