Snapdeal is expected to lay off 500-600 employees
In a bid to rationalise its businesses and make them more effective, Snapdeal is going to lay off at least 500 employees in upcoming days.
Earlier, Snapdeal founders had hired employees about the same, saying “tough times were ahead”.
SoftBank -backed Snapdeal is going to fire around 600 people across its e-commerce, logistics and payments functions over the next coming days. The resources added that the decrease will include employees across levels and the process will be finished in the next coming days.
Image source: forbes.com
The e-commerce organisation, which has been locked in an extreme struggle with opponents Amazon and Flipkart, has been incapable of increase fresh investment. Snapdeal has always had challenging opponents in the business and has been incapable of increase funding.
Snapdeal has already taken a number of steps to improve optimisation of functions that lead to 35 % lower delivery costs and 25 % lower company fixed costs. Snapdeal has also seen its net earnings improve 3.5x this financial.
In Feb 2017, Kunal Bahl, co-founder of Snapdeal also said Reuters he desires to turn successful in the next two years, as the organisation cuts costs and boosts efficiency in an industry currently taken over by home-grown Flipkart and US online giant Amazon.
E-commerce in India, one of the world’s quickest growing online services market, has mostly been motivated by extreme discount rates, leading to investor discount rates due to issues about productivity.
Snapdeal had also revoked its motivation program for customers. However, the company managed that it is fine-tuning the program and will move out new plans over the next few days.