Snapdeal denies reports of 80% layoff of its employees
Snapdeal on Monday denied reports that it will be sacking 1,000 employees after it walked away from the Flipkart deal.
- Snapdeal denies reports of it going to sack 1,000 employees
- Says that there will not be any layoffs
- Some employees may leave the company during this transition process
Snapdeal has denied that it is laying off 80% of its employees. A source from the company rubbished media reports that Snapdeal has decided to sack around 1,000 of the 1,200 employees that are present in the company. The source added that while there will not be any layoffs, it can be expected that some employees may leave the company during this transition process.
It was revealed that Snapdeal's management had been given verbal instructions to their department heads to prepare a list of employees to be sacked.
This comes after Snapdeal on Monday rejected the merger deal with Flipkart and has decided to continue as a standalone company. The company would exit its non-core business, which would mean the sale of its distribution arm Vulcan Express.
The ANI report quoting a senior official said that the money from the sale of Freecharge to Axis Bank for Rs 385 crore will sack around 1,000 employees out of their present workforce of 1,200 and carry forward with the remaining.
Snapdeal has seen a huge downsize in its staff from over 9,000 employees in July last year down to 1,200 employees currently without any notice, said the report.
The report pointed that the rejection of Flipkart's $950 million offer to continue on the road ahead is a reason for this massive layoffs.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.