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

The Economic Times - - Front Page -

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.

Shed­ding Weight

‘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.

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