Snapdeal, Softbank backed eCommerce firm is planning to lay off around 600 employees over the next few days in order to become India’s first profitable eCommerce firm. The layoff will take place across eCommerce, logistics and digital payment divisions of the company.
According to confirmed sources aware of the development, Snapdeal has already started the layoff process and it will be completed in next few days. The layoff is taking place in all the sections including Snapdeal (eCommerce), Freecharge (Digital Payments) and Vulcan (Logistics). Also, the lay off will include employees from all the levels.
Speaking on the development, one of the spokesperson from the company stated that the lay off is in order to become India’s first profitable eCommerce company in next two years. Also, taking measures to increase efficiency continuously in all parts of the business helps keeping a good relationship with sellers and customers. The realignment of employees and resources will help to attain high quality business growth in the years to come.
Snapdeal has been undertaking a lot of measures to optimize the cost of operations. It has reportedly worked to reduce logistics cost by 35 percent and fixed company cost by 25 percent. Also, the net revenue of the company has increased 3.5x this fiscal year. Last officially reported strength of the eCommerce company was 8000.
Snapdeal expects to turn its logistics arm, Vulcan Express profitable by mid of this year.