Announcing job cuts Snapdeal could sack 60% of its workforce while FreeCharge, owned by Snapdeal, will also lose its CEO – Govind Raj – as he puts in his papers less than two years since joining the company.
Sanpdeal had acquired FreeCharge in April 2015 and in August Rajan was came on board as COO – in May 2016 he was elevated to CEO.
The SoftBank, Foxconn and Alibaba Group-backed company is currently looking to optimise costs in the face of competition from Amazon and Flipkart in the e-commerce space.
Snapdeal claims to be aiming at a course correction and reportedly the company’s founders Kunal Bahl and Rohit Bansal will not be taking salaries – for an unspecified period. The two had sent out an internal mail admitting to their employees that they had taken some wrong decisions over the course of two years and are now looking to correct those.
According to TOI, 250-300 employees have already been fired from across the country including a bulk from the headquarters in Gurgaon. The final cut could include up to 1500 or more which amounts to about 50-60% of their workforce.