Snapdeal founders take 100% salary cut
Team Udayavani, Feb 22, 2017, 6:20 PM IST
New Delhi: Snapdeal co-founders Kunal Bahl and Rohit Bansal have taken a 100 per cent salary cut, while many others at the firm have “proactively” offered significant reduction in compensation.
The SoftBank-backed firm, which has been struggling to raise fresh funding, is also laying off hundreds employees and eliminating non-core projects to focus on “profitable growth”.
In an e-mail to employees, Bahl conceded that over the last 2-3 years, with all the capital coming into this market, the company and the entire industry “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,” he said.
Bahl cited examples of global companies like Apple, Tesla, Amazon, Netflix, Lego and Spicejet that “painted themselves into a corner many times over” before they became successful. He said Snapdeal is being re-organised into a lean, focused and entrepreneurial company.
“We are combining teams, reducing layers, eliminating non-core projects and strengthening the focus on profitable growth. Sadly, we will also be saying really painful goodbyes to some of our colleagues in this process,” he said.
According to sources, the company is in the process of laying off about 600 people across Snapdeal, Vulcan Express (logistics) and FreeCharge (payments). “…both Rohit and I are taking a 100 per cent salary cut. Many of our leaders have also stepped up proactively and offered to take a significant cut in their compensation,” he said.
The company had last reported an employee strength of 8,000 people. Snapdeal is locked in an intense battle with rivals Amazon and Flipkart.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post
RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm
Front-running case: Sebi bans 9 entities from market , impounds illegal gains of over Rs 21 crore
Global trends, FIIs’ move to dictate trends in markets in holiday-shortened week: Analysts
GST Council postpones decision to cut tax on insurance, rate panel defers report submission
MUST WATCH
Latest Additions
I never liked dubbed English films: Sanjay Mishra
TTD sub-temple in Tarigonda receives golden crown donation
Murder accused hurls slipper at judge in Thane court; booked
Karnataka: Nine Lord Ayyappa devotees suffer burn injuries in LPG cylinder blast
Record govt jobs provided in one, one and a half years: PM Modi
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.