Ecommerce major Snapdeal has reportedly confirmed about layoffs within the organisation. However, the exact number is still undisclosed. The company’s founders, Kunal Bahl and Rohit Bansal, have pledged not to take a salary, for an unspecified period, reported ET.
“On our journey towards becoming India’s first profitable ecommerce 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,” said Snapdeal.
“We believe that every resource of the company should be deployed for driving us towards profitable growth and with this announcement, both Rohit and I are taking a 100 percent salary cut,” In an email, sent by ET. Also, other top company executives are also expected to take a pay cut as well.
In an interview with Reuters, Snapdeal’s Bahl had said that he expected the company to turn profitable in the next two years. However, the company been through a lot of ups and downs with combination of mounting losses, ongoing churn of its top executives in the company, and the rapid growth of rival Amazon over the same period.
As per the earlier reports, SoftBank-backed Snapdeal was planning to layoff around 600 employees across its ecommerce, logistics and payments operations over the next few days.
Snapdeal’s employee-related expenses rose to Rs 911 Cr in FY 2016, up 148% from the previous fiscal. For the financial year 2015-16, the company’s total sales grew 56% to Rs 1,457 Cr., but losses more than doubled to Rs 2,960 Cr.