Sachin Bansal, the chief operating officer and co-founder of Flipkart, has revealed that the company follows the same performance metrics for all the employees, irrespective of the position. He said that even he was not spared for his performance issue because of which he was replaced by Binny Bansal, the co-founder.
He made this announcement at a town-hall meeting at the company’s headquarters in Bengaluru on Friday.
The company laid off about 300 employees because of poor performance last month, which raised many questions among the employees. Bansal disclosure came as to alert the employees about the company’s evaluation process.
“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.” He said in the meet.
“At Flipkart, we have an open and transparent culture. The town hall that we conduct regularly is one of the pillars of this culture of openness. Our performance metrics are freely shared to encourage a collaborative environment. Anybody is free to ask any question, challenge existing norms and hold the leadership accountable for business and organisation metrics”.
“We believe this leads to an environment of trust, openness and respect and is one of the building blocks for our organisation of the future. We are also probably the only large company in India to have this open and collaborative culture”. He added.
The leading E-commerce site set up in 2007 is facing tough competition from the global online shopping giant Amazon. The company lay offs a part of improvement and strengthening the company. The e-commerce sector has been seeing lay offs from the beginning of the financial year. Since there is a slump in the sector, these lay off can be considered as a part of cost burns by the company.
At this moment the candid statement by the current COO Sachin Bansal may regain the employees’ confidence. At the same time, the confession may presumably create fear among the employees that even the top management is not spared by the company evaluation processes.