NEW DELHI, Feb 22: SoftBank-backed Snapdeal will lay off around 600 people across its e-commerce, logistics and payments operations over the next few days.
According to sources, the company started the process last week and will lay off 500-600 people across Snapdeal, Vulcan (logistics) and Freecharge (digital payments business).
The sources added that the reduction will include employees across levels and the process will be completed in the next few days.
A Snapdeal spokesperson said: “On our journey towards becoming India’s first profitable e-commerce 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,” the spokesperson added.
The company had last reported an employee strength of 8,000 people.
Snapdeal, which has been locked in an intense battle with rivals Amazon and Flipkart, has been struggling to raise fresh capital.
Snapdeal has already taken a number of steps to increase optimisation of operations that resulted in 35 per cent lower delivery costs and 25 per cent lower company fixed costs.
Snapdeal has also seen its net revenues increase 3.5x this fiscal.
“Building on all of these substantial gains, Snapdeal expects to be the first profitable e-commerce company in India within two years,” the spokesperson said.
It also expects Vulcan Express to turn profitable by the middle of this year. (PTI)