Many vertical heads have resigned at Snapdeal as it struggles to reboot
August 3, 2017
Snapdeal is going through tough times in more ways than one. After failing its investors on a Flipkart buyout, the Gurgaon-based online marketplace slashed 80 percent of its workforce. And now, it stands to lose key vertical heads, if reports are to be believed. Snapdeal’s product, technology and engineering heads seemed to have stepped down in the wake of those massive layoffs. A day before that, heads of FMCG and general merchandise too had resigned, ANI reported. Many more employees in these divisions are going out as well.
Snapdeal had 1,200 employees before it decided to pivot as ‘Snapdeal 2.0′ earlier this week. That decision led to its fallout with potential buyer Flipkart. The company then decided to lay off a majority of its workforce, that would leave it with 300-odd employees. Those would be tasked with running a leaner, meaner version of Snapdeal that wants to become the “champion of sellers” in the words of its founder-CEO Kunal Bahl. However, the beleaguered company needs to sort out its organizational chaos before anything else. This is the second time in less than a year that Snapdeal’s HR woes has hit headlines.
In February, it had fired 600 employees in a bid to cut costs; the founders as well as some top executives had to forego their salaries. “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,” Bahl had then written in an email to employees. He’d even hinted at a potential buyout of the company. Prior to this, in July 2016, Snapdeal carried out the biggest layoff exercise in the Indian startup space. It sacked thousands of employees, and reduced its workforce from 9,000 to under 2,000. At its peak in early 2016, Snapdeal had been valued at $6.5 billion, and was one of the top internet companies in the country.
Under the current circumstances, Jasper Infotech (owner of Snapdeal) is chalking out a resizing that is reportedly leaving employees in the lurch. According to its re-modelled severance package, employees are being asked to leave without notice. They are being given a month’s salary and a month’s severance package, as opposed to a three-month severance pay as promised in February, ETreported. “Many of them were waiting around for the retention bonus which would have come with an acquisition by Flipkart. Now there is no reason for them to be around,” an employee was quoted as saying.