News: Flipkart founder's company Navi Technologies fires 20% of staff – Here’s why

Strategic HR

Flipkart founder's company Navi Technologies fires 20% of staff – Here’s why

An employee with close ties to the HR department has disclosed that not all layoffs within the company were based on performance evaluations.
Flipkart founder's company Navi Technologies fires 20% of staff – Here’s why

Navi Technologies, a non-banking financial company (NBFC) founded by Sachin Bansal, the co-founder of Flipkart, recently conducted a round of layoffs resulting in the termination of more than 250 employees. 

As reported by Business Today, an employee affected by the recent layoffs at the company shared their experience, stating, "I was a part of their tech team for over a year now, they laid me off on Tuesday, I got no severance also due to the new HR policy."

In addition, the aforementioned report disclosed another employee's account. The employee, currently employed in the administrative department of the company, confirmed the layoffs and provided insights into the extent of downsizing in this particular round.

“The layoffs have been going on since Tuesday and will go on till Friday's first half. Tech, Product, Business, Analytics, no department is left untouched. The company plans on downsizing its staff by 20 per cent, over 250 people are impacted, "the source said.

Additionally, the employee shared insights regarding a recent HR policy change at the company. “Until last year, Navi had two appraisal rounds, one in June, another in December. Employees who performed well were given hikes, non-performers were given warnings and notice to improve, and very few were laid off. But as per the latest HR policy, the company will only give promotions in December, and layoffs will be done in both cycles. Moreover, as per new policy, the company will not give any severance if an employee has been laid off in either of these cycles,” he said.

According to another employee closely associated with the HR department, it has been revealed that not all terminations within the company were solely influenced by performance evaluations.

He said, “The top management had plans of downsizing, that is why they tweaked the HR policy to ensure they don’t end up paying so much in severance. Moreover, not all layoffs are performance-based, as they will tell you. For example, there are many cases, where say a candidate got a 4/5 in the review after the process was completed. But management would push heads of departments to redo the process again until the score of a set number of employees in each department came down to 1 or 2. And basis that, they have now been asked to leave the company.”

Navi Technologies, a fintech startup, is actively involved in various sectors such as digital lending, home loans, mutual funds, health insurance, and microloans. A reliable insider within the company has indicated their intention to raise funds through debentures within the upcoming months.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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