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Snapdeal Founders Admit to strategic Mistakes, Layoffs To Begin Soon

Edited By: Siddhartha Sharma

News18.com

Last Updated: February 23, 2017, 07:57 IST

Kunal Bahl, co-founder of Indian online marketplace Snapdeal, 
(Image: Reuters)

Kunal Bahl, co-founder of Indian online marketplace Snapdeal, (Image: Reuters)

A report says that the founders will not be taking salaries for an unspecified duration of time and the company will layoff over 600 employees in coming days.

Online marketplace Snapdeal is going through troubled times and it's quite evident now after founders of the company, Kunal Bahl and Rohit Bansal admitted in a letter to their employees that they made some serious errors in strategy.

The letter also stated that "At Snapdeal, we find ourselves at an important point in our journey – we know where we want to go and now is the time to make the choices of how we will get there."

The founders admitted that their company is going through troubled times.

"Has our company and industry been going through a troubled time? Absolutely. Did we make errors in our execution? No doubt about that. Over the last 2-3 years, with all the capital coming into this market, our entire industry, including ourselves, started making mistakes. We started growing our business much before the right economic model and market fit was figured out. We also started diversifying and starting new projects while we still hadn’t perfected the first or made it profitable. We started building our team and capabilities for a much larger size of business than what was required with the present scale."

In a report filed by Economic Times also says that the founders will not be taking salaries for an unspecified duration of time.

The founders also gave a formula for revival of the company in their letter that stated, "The formula to revive the company is uncannily similar for almost all of them – focus on only your core, stop all non-core activities, reduce costs drastically, turn profitable as soon as you can, and use those profits to spur further growth and new projects. We must do the same, and there is no doubt that with the really smart folks we have in the company, we will make it something that we are all very proud of."

Reports also suggest that the company will layoff over 600 people in the coming few days as the cloud of uncertainty looms over Snapdeal.
first published:February 22, 2017, 17:24 IST
last updated:February 23, 2017, 07:57 IST