According to reports e-commerce company Snapdeal is struggling to raise funds. Little wonder then that the company is drastically trying to cut costs by laying off its employees. With growth and funding moving at a slow pace, firing employees, it seems, is the only option for Snapdeal.
As per a Economic Times report, Snapdeal’s plan is to trim about 30% of its workforce over the next two months which means, about 1,000 employees are going to lose their jobs. Thousands of contract workers in the company’s logistics division are also expected to be let off.
The company made this decision clear when co-founders Kunal Bahl and Rohit Bansal sent out an e-mail to employees saying the current phase is an “inflection point” for the company.
They also asked the managers to “right-size” their respective teams and take tough calls for the sake of company’s future and sustainability
Snapdeal’s cost-cutting drive comes at a time when many senior-level employees including senior vice-president of partnerships Tony Navin, senior vice-president and head of the consumer-to-consumer platform Shopo Sandeep Komaravelly and Abhishek Kumar, head of corporate development have quit the company.
“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 and new hires about to complete a year,” a source told ET.
Snapdeal CEO in an interview told Reuters that he is expects Snapdeal to turn profitable in next two years. He said, “I see a relatively clear line of sight to (profit) and we’ve been making great progress in that direction also,”. “We needed capital to build the infrastructure which we have, now we have to take control of our destiny.”
