Snapdeal is to fire regular and contract workers with the intention of cost cut
As the entire world moves towards the ecommerce sector, people might think that the ecommerce sector will be the ever green field in future. But that thinking of many has been proven as the wrong fact after witnessing the leaked reports of the Indian Ecommerce giant Snapdeal on the process which are going to implement in order tighten their belt.
Indian Ecommerce giant Snapdeal
The New Delhi based e-commerce Company SnapDeal has emerged as one of the giant in the Indian e-commerce world in few years. Though, the revenues of the e-commerce company SnapDeal seems to be promising and also in good level, with the arrival of high number of competition in the e-commerce world the giant is about to take certain precaution steps in order to face the tight finance in nearby future.
Cost Cut Procedure taken by the Indian e-commerce Giant SnapDeal
As per the reports leaked by the top officials of the e-commerce company, the snapdeal faced lot of pressure and in-abilities to achieve its last year target. In fact, they fell with 30% low when compared with the landmark which they achieved previous financial year.
While analyzing the reason behind the in-ability, the experts of the company pointed out the hike in the company’s expenses. While comparing with the last financial year’s expenses records the company had spend around 150% more under the employee’s related expenses. At the same time, the company has failed to achieve the growth ratio which they maintained in past few years.
After witnessing those statistics the higher officials of the e-commerce firm has sent detailed circular to all its managers about re-size their working team as the company is about to reduce the expenses records in nearby future.
Key points to be noted
- As per the news gathered from the trustable sources, it is confirmed that the e-commerce giant is about to reduce their employees numbers in big margin within next two months.
- With respect to the statistical data from the e-commerce company, the expenses related to the employees have been increased to the whooping amount of around Rs. 910 Crore in this financial year.
- So, far the company has about 1K direct employees and around 8K indirect employees who are working for SnapDeal on the contract basis, due to the downsizing employees numbers the e-commerce company is to reduce about 30% of their strength in near future.
- The senior person from the e-commerce firm has quoted that the revenues of the company has been increased by around 50% level and at the same time, the expenses carried by the company has nearly doubled when compared with the previous financial year.
Though, the company did the similar kind of activities in last financial year, but the numbers are too low when compared with this financial year. On last February the company had fired around two hundred employees on showcasing the reason as “Under Performance”, however, the numbers are likely to be in high numbers on this financial years since the company facing hard times to reduce their expenses level.
Apart from this activities, the company officials announced that the firm is about to provide better and enhanced customer care service and to improve the seller experiences in nearby future.
Other Articles
Leave a Reply