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Indian e-commerce major Snapdeal is reportedly planning to scale down its operations in its few regional offices including the major ones in Mumbai, Bangalore, Kolkata, and Hyderabad. According to a report, which cited unnamed people within the company, the firm may even shut down its few offices in next 6 months if it fails to raise a fresh round of funding.
Snapdeal has been facing the heat of intense competition from Flipkart and Amazon for quite some time now. This new report follows the recent exit of Chief Product Officer Anand Chandrasekaran who was one of the most important senior executives.
According to anonymous category managers, account management executives and seller onboarding team managers at Snapdeal, the company has also asked many of its other employees to relocate to Delhi head office prompting them to resign.
In fact, the vendor and accounts management teams in Bangalore are already down from 85 people a year ago to 45 people at present. This is further indicative of the turmoil which might be going on within the company.
As per a senior executive, some employees, who were asked to relocate and failed to do so, have been given severance packages for two months.
In addition to this, some employees also left the company due to impossible demands of the company from employees regarding its performance improvement plan. Back in February, the company had reportedly placed around 200 employees on notice and asked them to go through a 30-day Performace Improvement Plan.
The people mentioned above also revealed that the company is now focussing more on its ad business. And this is indeed true as the company recently launched a new version of its ad platform to enable sellers to target buyers based on their online behaviour, geo-location, and purchase history.
However, a spokeswoman for the company has denied the reports of scaling down Snapdeal operations and leaving of employees.The spokeswomen wrote,
“We are relocating all our NCR-based team members to our Gurgaon campus, as the lease on other smaller NCR based locations comes to an end. The capacity in the Gurgaon campus has been designed accordingly. Any team members choosing to leave for their individual reasons receive all payments due to them per their employment contract.”
Earlier this year, Snapdeal’s parent company Jasper Infotech had raised $200 million from Ontario Teachers’ Pension Plan and Singapore-based investment entity Brother Fortune Apparel.
However, given the huge losses of last financial year which rose to Rs. 1328 crore, the company is looking to raise much more amount of funding to sustain its operations and remain in competition with Amazon and Flipkart.
Snapdeal has been facing the heat of intense competition from Flipkart and Amazon for quite some time now. This new report follows the recent exit of Chief Product Officer Anand Chandrasekaran who was one of the most important senior executives.
According to anonymous category managers, account management executives and seller onboarding team managers at Snapdeal, the company has also asked many of its other employees to relocate to Delhi head office prompting them to resign.
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In fact, the vendor and accounts management teams in Bangalore are already down from 85 people a year ago to 45 people at present. This is further indicative of the turmoil which might be going on within the company.
As per a senior executive, some employees, who were asked to relocate and failed to do so, have been given severance packages for two months.
In addition to this, some employees also left the company due to impossible demands of the company from employees regarding its performance improvement plan. Back in February, the company had reportedly placed around 200 employees on notice and asked them to go through a 30-day Performace Improvement Plan.
The people mentioned above also revealed that the company is now focussing more on its ad business. And this is indeed true as the company recently launched a new version of its ad platform to enable sellers to target buyers based on their online behaviour, geo-location, and purchase history.
However, a spokeswoman for the company has denied the reports of scaling down Snapdeal operations and leaving of employees.The spokeswomen wrote,
“We are relocating all our NCR-based team members to our Gurgaon campus, as the lease on other smaller NCR based locations comes to an end. The capacity in the Gurgaon campus has been designed accordingly. Any team members choosing to leave for their individual reasons receive all payments due to them per their employment contract.”
Earlier this year, Snapdeal’s parent company Jasper Infotech had raised $200 million from Ontario Teachers’ Pension Plan and Singapore-based investment entity Brother Fortune Apparel.
However, given the huge losses of last financial year which rose to Rs. 1328 crore, the company is looking to raise much more amount of funding to sustain its operations and remain in competition with Amazon and Flipkart.
Posted in: Amazon,Anand Chandrasekaran,Brother Fortune Apparel,Flipkart,Jasper Infotech,Ontario Teachers,Snapdeal
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