Flipkart’s Sachin Bansal reveals he was replaced due to performance

Flipkart’s co-founder Sachin Bansal confessed he was replaced as chief executive because of performance. His disclosure comes at a time when Flipkart’s employees are anguished over downsizing.

During the monthly Friday meeting, Bansal said admitted even he was replaced, cooling down employees who questioned why they had to pay the price for management decisions.

Bansal was replaced as CEO by co-founder Binny Bansal in January and made executive chairman.

"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,” said Sachin Bansal during the Friday meeting.

Flipkart received a string of bad news recently such as valuation markdowns, high-level exits, rising competition with Amazon, etc. The largest online marketplace in India now wants to make profits and wants to do away with non-performing employees.

Experts say Bansal's statement could win back employee trust as the e-tailer is preparing for festive season next month.

"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.....While the performance management philosophy was part of the last town hall discussion, an overwhelming majority of the time was spent on discussing the great strides that Flipkart had made in its business performance," a Flipkart spokesman told ET.

As soon as Bansal made the disclosure, nearly 200 employees applauded his revelation.
So far, Flipkart saw many top level exits such as Myntra founder Mukesh Bansal, chief business officer Ankit Nagori, former chief product officer Punit Soni, etc.