Struggling e-commerce firm Snapdeal, which has over the past year more than halved its employee strength, is reportedly shutting its non-core businesses. However, the company has firmly denied all reports that it is laying off over 1,000 employees.
When contacted, a Snapdeal spokesperson told Indiaretailing Bureau:
“A recent media report about job cuts at Snapdeal is speculative, evident from the number of “un-named sources” quoted in the report. It portrays a distorted interpretation of our on-going efforts in pursuit of our well established goals of efficiency, experience and growth.”
“On our journey towards profitability, it is imperative that we continue to drive efficiency in our business, which enables us to pass on the value to our consumers and sellers. As in the past, and like all good companies do, we will continue to assess resource allocation in furtherance of our goals of enhancing customer and seller experience while driving high quality growth,” the Spokesperson added.
Despite the clarification, the beleaguered e-commerce firm shutdown marketplace Shopo last week after a year-and-a-half of operations. The company had acquired Shopo – a platform that allowed small and medium-sized businesses to chat, buy and sell on the platform on a zero-commission model – in 2013. Ironically, in 2015, Snapdeal had announced an investment of $100 million in this very marketplace.
This week, there have been reports that the e-tailer has also disbanded its SD Instant team (Same Day Delivery Express). The service allowed customers to purchase daily needs and fresh foods and enjoy same day/next day delivery. It was launched across Delhi, Mumbai and Bengaluru, but the service is now only operational in Gurgaon.
A number of senior level officials have also quit lately, including Fashion Head Amit Maheshwari, Senior Vice-President Tony Navin; Head of Shopo, Sandeep Komaravelly and Corporate Development Head, Abhishek Kumar.
Amit Maheshwari had been elevated as CEO of Exclusively, the e-tailer’s premium and luxury fashion goods platform, which was shuttered last year.
In September 2016, Snapdeal underwent a massive restructuring and marketing exercise. Under the same, a new logo was introduced, along with a new tagline. Furthermore, it initiated an investment of Rs. 200 crore, solely focusing on enhancing the marketing campaign.
Prior to its revamp, Snapdeal recorded a loss of Rs 2,960 crore during the financial year ending March 31, 2016, which is almost double the loss incurred in the previous financial year.