SoftBank-backed Snapdeal will lay off around 600 people across its e-commerce, logistics and payments operations over the next few days. According to sources, the company started the process last week and will lay off 500-600 people across Snapdeal, Vulcan (logistics) and Freecharge (digital payments business). The sources added that the reduction will include employees across levels and the process will be completed in the next few days. Also Read - iPhone 11, iPhone XR up for grab with massive discount on Flipkart Big Saving Days saleAlso Read - Flipkart Big Saving Days sale begins: Pixel 4a, Realme X7, Samsung Galaxy F62, more on discount
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 spokesperson added.
The company had last reported employee strength of 8,000 people. Snapdeal, 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 optimization 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. ALSO READ: SoftBank lost $350 million from investments in Snapdeal, Ola in 2016
“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.
BONUS VIDEO: HTC U Ultra and U Play Overview