Snapdeal Saga: 1,000 employees to get pink slips after Flipkart merger called off

The E-commerce major Snapdeal revealed that the company is considering major layoff, with a plan to cut down 80 percent of its workforce, ANI reported.

Snapdeal on Monday called off the merger with Flipkart and decided to continue independently as an ecommerce marketplace.

A senior official of the company told ANI that the management has given verbal instructions to their department heads to prepare the list.

Additionally, the official also revealed that with the money from the sale of Freecharge received Rs 385 crore ($60 million), the firm has decided to sack around 1,000 employees out of their present workforce of 1,200 and carry forward with the remaining.

The company says that it now has a new direction, which is Snapdeal 2.0.

"We have a new and compelling direction - Snapdeal 2.0 - that uniquely furthers this vision, and have made significant progress towards the ability to execute this by achieving a gross profit this month. In addition, with the sale of certain non-core assets, Snapdeal is expected to be financially self-sustainable," Snapdeal's spokesperson said.

We look forward to the support of our community, including employees, sellers, buyers and other stakeholders in helping us create a designed-for-India commerce platform," the spokesperson added.

In July last year, the company had over 9,000 employees. However, the management cut down the talent pool down to 1,200 without any notice.

According to sources, from last Thursday evening, Kunal Bahl and Rohit Bansal have firmly instructed their business and technical heads to restructure their teams and begin the paperwork for their layoff, as reported by The Newsminute.