Snapdeal all set to fire 30% of its staff in coming 2 months
Snapdeal aims to trim about 30% of its workforce over the next two months, according to four people aware of the plan at the Gurgaon-based company.
The move is expected to affect about 1,000 employees directly employed by the company in its ecommerce marketplace while thousands of contract workers in the company’s logistics division are also expected to be let off, said the people cited above.
“5,000-odd contract staff employed by the company’s logistics subsidiary Vulcan Express will be pared down as well as about 3,000 people on the rolls of the logistics company,”
said a company executive and two consultants working with the company.
The move will help them drastically cut costs as the Indian ecommerce industry battles slowing growth and a paucity of investors willing to provide fresh rounds of funding.
“On our journey towards profitability, it is imperative that we continue to drive efficiency in our business, which enables us to pass on the value to our consumers and sellers. As in the past, and like all good companies do, we will continue to assess resource allocation in furtherance of our goals of enhancing customer and seller experience while driving high quality growth,”
the company representative wrote.
The CEO of a Delhi-based ecommerce firm said that
“Snapdeal is under tremendous pressure to achieve targets similar to last year with 30% less resources”, adding that his company had seen a surge of resumes from Snapdeal in the past six months.The company now has an investor which has suddenly gone cold on India and is looking to right-size operations by reducing discounts, which in turn will reduce orders and requirement of staff,”
The decision to further reduce its workforce also comes on the back of the company’s decision to shut down Shopo.In 2013, Snapdeal had acquired Shopo. The platform allows small and medium-sized businesses to chat, buy and sell on the platform on a zero-commission model.
“These senior-level exits are on account of the executives looking out for better opportunities. The layoffs are primarily directed at mid-level employees and new hires about to complete a year,” said a source.