Snapdeal founders in damage control mode, assure employees of increments
The e-commerce company has already laid off more than half its workforce. Now, at the brink of acquisition by Flipkart, Snapdeal is telling its employees not to fret.
Amidst talks of acquisition by Flipkart, online marketplace Snapdeal seems to be taking steps to do damage control with its employees. In a letter to them, CEO Kunal Bahl, along with Snapdeal Co-founder Rohit Bansal, has said that they are prioritising the employees’ well-being, and that they have the annual performance review is currently on.
The full body of the letter:
There has been a lot of media reporting and speculation around Snapdeal recently.
While our investors are driving the discussions around the way forward, I am reaching out to let you know that the well-being of the entire team is mine and Rohit's top and only priority. We will do all that we can, and more, in working with our investors to ensure that there is no disruption in employment and that there are positive professional as well as financial outcomes for the team as the way forward becomes clear. Let me repeat, your well-being is our #1 priority.
In the interim, the annual performance review process is nearly complete and you will the receive the salary revision and promotion letters (where applicable) over the next two weeks. Given the incredible progress we have made around our profitability journey as a company, the overall increments this year are higher than those offered last year.
Please do feel free to reach out with your suggestions and concerns. Stay awesome!
Kunal & Rohit
Snapdeal, which, sources say, is on the brink of a buyout by either Paytm or Flipkart, had recently laid off a majority of its workforce in February. Acquisition might lead to even more loss of jobs, as you don’t want to maintain workforce for similar functions across both companies.
Currently, SoftBank, Snapdeal’s biggest investor, is reportedly in disagreement with early investors Nexus Ventures and Kalaari Capital, which is delaying the deal. Snapdeal surely is a sinking ship, hence no one wants to put money in it. The Flipkart deal is an opportunity to create some future value for shareholders.
Snapdeal’s losses have more than doubled from the previous year to Rs 2,960 crore for the financial year ended March 2016, as per documents filed with the Registrar of Companies. According to sources, Snapdeal’s GMV has fallen to an all-time low of Rs 300 crore per month.