Snapdeal to lay off 600 staff; founders take 100 pc pay cut
New Delhi : It’s hard to believe, online merchant Snapdeal is all set to lay off 600 staff across verticals. Softbank-backed, merchant struggling to raise fresh capital, will stop all non-core activities, reduce costs drastically and handover pink slips to employees to turn profitable.
In a bid to soften the blow of the drastic decision, Bahl and co-founder Rohit Bansal will take 100 per cent salary cut.
The company, earlier this month, had announced shutting down of its consumer to consumer marketplace Shopo.
As part of the revival plan, Snapdeal will reorganise into “a lean, focussed and entrepreneurial one” by combining teams, reducing layers, eliminating non-core projects and strengthening focus on profitable growth.
Snapdeal, which faces intense competition from Amazon and Flipkart, had last reported an employee strength of 8,000.
Earlier in the day, Snapdeal announced that Freecharge’s CEO Govind Rajan had resigned, after nine months of becoming the chief executive at the mobile wallet company, which was bought by Snapdeal in 2015.