Delhi based Snapdeal has planned to take a step back and scale down its operations in the regional offices including Bangalore, Mumbai, Calcutta and Hyderabad. [source]
If the company fails to raise a fresh funding soon, the company may even shut down a few offices in the next six months.
The company had earlier launched a performance improvement plan for certain employees and also asked few employees from the regional offices to shift to its head office in Delhi. After giving severance packages for two months, few employees have also been asked to leave.
SoftBank backed Snapdeal has also cut its accounts and vendor management teams in Bangalore from 85 people a year ago, to 45 member.
The e-commerce competition has been intensifying and after the slowdown in funding, the companies are initiating new measures to curb the cash burn and is also restructuring its business model with the intent to make profits.
“Snapdeal strongly denies the ET report ( dated 27 May, 2016) about Snapdeal reducing operations in any regional office, the report is baseless and misleading. We are witnessing strong growth across all our markets in the country. Our campus in Gurgaon and regional offices in 8 cities are staffed by highly experienced teams, who continue to drive excellence and growth in our business. We have recently added more members to our Mumbai and Bengaluru offices and we are in the process of doing the same at Chennai,” said Snapdeal in a statement.