Report: Snapdeal wooing employees promising profit & brushing off takeover rumors

By : |April 4, 2017 0

Amidst cash crunch and investors feud, Snapdeal is finding it hard to convince employees of the ‘future profitability’ of the company. Snapdeal reportedly has conducted a series of undercover meetings with employees in past weeks, “promising profit and brushing off takeover talk.”

Citing sources, Livemint report says that employees are “rattled by reports of a cash crunch.” In the recent weeks, Kunal Bahl and Rohit Bansal have conducted at least five town halls to deliver motivational speeches. The employees wanted to know if there were take-over attempts but the reply was “It was only profitability and profitability,” one source said.

The report also says that Snapdeal is burning cash to sustain discounts—and keep customers—in a cut-throat online market. Apparently, Snapdeal sought funding support from Chinese funds and Alibaba Group Holding Ltd, however, due to investors feud, the homegrown e-commerce platform has so far come back empty handed.

Snapdeal also witnessed a valuation markdown that has dropped from a peak of $6.5 billion last year. Moreover, in February, Snapdeal layed off 600 employees.

Snapdeal declined to comment on staff exits or sentiment, but said its annual appraisals were currently underway, and staff would be offered incentives. We hope that will help the company to keep the employees happy.

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