Snapdeal Layoffs - 80% of staff likely to be fired
Snapdeal layoffs are imminent and according to a report published in ET, the company is likely to fire about 80% of its staff. The company's management has given verbal instructions to the department heads to prepare a list of people to be fired. The company has currently around ~8000 staff.
Snapdeal and Flipkart were in talks for a merger to fight the American behemoth Amazon in the tight ecommerce markets in India. Flipkart had offered $850 million to acquire Snapdeal, but the deal was called off because the investors couldn't agree. The deal also had a clause that Snapdeal would be responsible for any wrongdoings or issues within the company.
The Snapdeal founders have since then decided to follow an independent path. In my opinion, growing independently is going to be hardest in the current market scenario as the ecommerce business model was always based on alluring and acquiring customers on the basis of huge discounts. That's not going to work anymore.
The company had unveiled its new 'logo' and branding initiative, by investing close to about Rs. 200 crores. Several analysts had considered this as a very bad move among several others. Another move, was acquisition of FreeCharge for $400 million. Freecharge has now been sold to 'Axis Bank' for only $60 million.
All we can say is that not all is well with Snapdeal. Do you think the company can survive on its own?
Snapdeal and Flipkart were in talks for a merger to fight the American behemoth Amazon in the tight ecommerce markets in India. Flipkart had offered $850 million to acquire Snapdeal, but the deal was called off because the investors couldn't agree. The deal also had a clause that Snapdeal would be responsible for any wrongdoings or issues within the company.
The Snapdeal founders have since then decided to follow an independent path. In my opinion, growing independently is going to be hardest in the current market scenario as the ecommerce business model was always based on alluring and acquiring customers on the basis of huge discounts. That's not going to work anymore.
The company had unveiled its new 'logo' and branding initiative, by investing close to about Rs. 200 crores. Several analysts had considered this as a very bad move among several others. Another move, was acquisition of FreeCharge for $400 million. Freecharge has now been sold to 'Axis Bank' for only $60 million.
All we can say is that not all is well with Snapdeal. Do you think the company can survive on its own?
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