Indian e-commerce company Snapdeal is likely to lay off nearly 30% of its staff, a move which will affect full-time employees and contractual workers, a report in The Economic Times said.
According to the report, the downsizing move will help the company cut costs drastically and comes at a time when the valuation of e-commerce companies which were once thriving is falling drastically and investors pumping in money are far and few.
According to the , Snapdeal asked its managers to “right-size” their teams in an internal e-mail.
The downsizing may affect 1000 employees directly employed with Snapdeal, the report said, and about 5000 contractual workers employed at its logistics subsidiary Vulcan Express.
Snapdeal has already started the lay off process, with staff being let go in tranches of 40-50 persons. In February 2016, the e-commerce company had laid off at least 200 employees.
At the time of its last fund raising round, the Softbank-funded e-commerce company was valued at $6.5 billion.