Snapdeal layoffs: Even though Paytm offers jobs, employees future uncertain

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New Delhi | Updated: February 26, 2017 10:28:55 AM

Even though Paytm and other startups have come forward to offer jobs to the laid off employees of Snapdeal, the 600 employees are going through uncertain times as they deal with the news of their layoffs.

Kunal Bahl said he and co-founder Rohit Bansal would be taking a 100% pay cut. (PTI)

Even though Paytm and other startups have come forward to offer jobs to the laid off employees of Snapdeal, the 600 employees are going through uncertain times as they deal with the news of their layoffs.

Paytm’s chief Vijay Shekhar Sharma did emerge as a savior as he had tweeted: “Hello, Tech/Product people in Delhi NCR, feeling heat of business restructuring? We welcome you @Paytm and @Paytm-Mall, but it is uncertain as to how many employees can be absorbed by the start-up who will have similar constraints of right sizing.

One does not know exactly how many will be reemployed is not known. It is almost certain that all 600 employees can not be remployed. There will be many who would be hunting for jobs after the restructuring at Snapdeal and the mothballing of Stayzilla.

Recently, Softbank-banked Snapdeal announced that it was going to lay off as many as 600 employees across its companies – e-comm Snapdeal, mobile wallet FreeCharge, and logistics wing Vulcan Logistics – in a bid to restructure its business. Co-founder Kunal Bahl while justifying the move as a result of a ‘business mistake’ also said that he and co-founder Rohit Bansal would be taking a 100% pay cut. “Many other senior leaders have also offered to take a significant cut in their compensation.” This came only a few days after it was reported that Snapdeal had asked its managers to “right-size” their teams and that there were plans underway to lay off at least 30% of its workforce.

Chennai-based online hotel room aggregator Stayzilla also decided to shut shop because of intense competition in the market and tighter business environment.

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There is no doubt that government’s demonetisation move gave a strong impetus to Paytm and is in an expansion mode. While the company is slated to launch its payments bank soon just how many employees it is planning to hire is uncertain.

Even Mobikwik also said it was looking to pick up talent from those who had lost their jobs recently. But they need people in specific areas. whether, they will get that manpower resource from Snapdeal layoffs is yet to be seen.

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