"Flipkart denies all allegations of a lay-off," a company spokesperson said in a statement on Saturday.
Earlier, media reports informed that more than 700 under-performing employees will be given the option to resign or hand over the pink slip.
Media reports quoted a company spokesman as saying that Flipkart it has over 30,000 employees in the country and about 300 people were not able to meet the performance bar. But they were not told to resign or handed over the pink slips.
"At times, we have employees who do not meet the performance bar. In those situations, we work closely with employees to enable them improve their performance. In due course, if these employees are unable to make the desired progress, they are encouraged to seek opportunities outside the company where their skills can be better utilized," the spokesperson added.
"As a performance-oriented organization, we follow a transparent evaluation process," the statement said.
This week, Flipkart-owned Myntra announced acquiring e-store Jabong from its London-based owners Global Fashion Group (GFG) for $70 million (Rs 471 crore) .