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Snapdeal to Lay Off Around 600 People Over Next Few Days in Search of Profitability

Snapdeal to Lay Off Around 600 People Over Next Few Days in Search of Profitability

By Press Trust of India | Updated: 22 February 2017 16:07 IST

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Snapdeal to Lay Off Around 600 People Over Next Few Days in Search of Profitability

Highlights

According to sources, Snapdeal started the layoff process last week
It is said to lay off 500-600 people across Snapdeal and its arms
Snapdeal is said to be struggling to raise fresh capital

Snapdeal, the third-largest e-commerce player in India, will fire about 600 employees across the e-commerce, logistics (Vulcan), and payments (Freecharge) divisions over the next few days. The Softbank-backed firm started the layoff process last week and plans to hand pink slips to 500-600 people across Snapdeal, Vulcan and FreeCharge, according to sources.

The layoffs will affect employees across levels, and the process will be carry on for the next few days. Snapdeal had last reported an employee strength of 8,000 people.

A Snapdeal spokesperson said: "On our journey towards becoming India's first profitable e-commerce company in two years, it is important that we continue to drive efficiency across all parts of our business, which enables us to pass on the value to our consumers and sellers."

"We have realigned our resources and teams to further these goals and drive high-quality business growth," the Snapdeal spokesperson added.

The e-commerce company, which has been locked in an intense battle with rivals Amazon and Flipkart, has been struggling to raise fresh capital.

Snapdeal has already taken a number of steps to increase optimisation of operations that resulted in 35 percent lower delivery costs and 25 percent lower company fixed costs. Snapdeal has also seen its net revenues increase 3.5x this fiscal.

"Building on all of these substantial gains, Snapdeal expects to be the first profitable e-commerce company in India within two years," the spokesperson said.

It also expects Vulcan Express to turn profitable by the middle of this year.

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Further reading: Snapdeal, Layoffs, Job Cuts, Internet