Snapdeal Tightens Belt, Plans to Fire 30% Staff in 2 Mths
1,000 direct employees, thousands of contract staff at logistics arm to be affected
Payal Ganguly & Biswarup Gooptu
Bengaluru | New Delhi: 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 online marketplace plans to drastically cut costs as the Indian ecommerce industry battles slowing growth and a paucity of investors willing to provide fresh rounds of funding.
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.
In an email sent out to managers within the marketplace operations earlier this week, the company asked them to “right-size” their respective teams. With this round of layoffs, the company is expected to let go of about 1,000 from the marketplace. According to one of the people quoted above, the latest round began last week.
‘Re-sizing’ likely to affect one-third of employees involved with operations and a significant number of contract staff at the captive logistics arm Vulcan Express
The process started in early Feb with staff being laid off in tranches of
In Feb 2016,
employees were let go by Snapdeal
SoftBank-backed Snapdeal has been in talks to raise capital from existing investors at close to half the valuation of
in Feb 2016
Jasper Infotech, which owns and operates Snapdeal, last raised funds in August 2016 at a valuation of $6.5 billion.
A representative for SoftBank-backed Snapdeal said the company “will continue to assess resource allocation”, in an emailed response to ET’s queries. The company did not respond to specific queries from ET on the plan to lay off employees.