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Sanpdeal likely to fire 30% of its staff within two months

 2017-02-11 16:43:03.0

Sanpdeal likely to fire 30% of its staff within two months

Around 1,000 staff members directly employed by the company will be let off part from nearly 8,000 contract workers in the online marketplace's logistics divisions. The company had sent out e-mail to its managers earlier this week asking them to "right-size"' their teams.

Snapdeal is owned and operated by Jasper Infotech , which last raies funds in August last year at a valuation of USD 6.5 billion. In Februrary last year, Snapdeal had put over 200 employees on a Performance improvement Propgramme and eventually let go of the additional staff.

The CEO of a Delhi-based e=-commerce firm was quoted as saying that Snapdeal was under tremendous pressure to achieve targets similar to last year with 30 percent less resources.
The company's employee-related expenses rose to Rs 911 crore in the last financial year, up 148 percent previous fiscal. Its sales for 2015-16 sales grew 58 percent to Rs 1,457 crore, but losses more than doubled to Rs 2,960 crore.

The Founder and Chief Executive Officer Kunal Bahl said that he expects Snapdeal to turn profitable in the next two years.
"I see a relatively clear line of sight to (profit) and we've been making great in the direction also,"Bahl said. "We needed capital to build the infrastructure which we have, now we have to take control of our destiny."

The earnings before interest, tax, depreciation and amortization (EBITDA) of Snapdeal, for the nine months of the current fiancial year has improved by about 40 percent from a year earlier ,while commisions have grown 3.5 times, he said.


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