Bengaluru: India’s third largest online market place – Snapdeal announced on wednesday that it is laying off around 600 of its employees. The lay-offs will affect employees across levels, and the process will be carry on for the next few days.
The company’s co-founders Kunal Bahl and Rohit Bansal sent out an email to anxious staff, admitting they took several wrong decisions over the past two-three years amid a funding frenzy and that it was time to course-correct. The communication from the founders follows a cost-cutting drive by Snapdeal to conserve cash. The co-founders will take a 100% salary cut, Bahl said in the email.
Preparing the staff for the layoffs, Mr Behl said, “Snapdeal is being re-organised into a lean, focused and entrepreneurial company. We are combining teams, reducing layers, eliminating non-core projects and strengthening the focus on profitable growth. Sadly, we will also be saying really painful goodbyes to some of our colleagues in this process”.
Bahl and Bansal also wrote in their email that “We started growing the business before the right economic model and market fit was figured out. A large amount of capital with ambition can be a potent mix that drives a company to defocus from its core. We feel that happened to us. We started doing too many things, and all of us starting with myself and Rohit, are to blame for it,” they said. They said from here on, Snapdeal would focus only on its core strengths and shut all non-core businesses in a bid to drastically cut cost.
Snapdeal is locked in an intense battle with Amazon and Flipkart in the e-commerce space. The company had last reported employee strength of nearly 7,000 people.