Interestingly, there are other startups ready to absorb those employees. . This is exactly what is happening at Paytm and Mobikwiik which are essentially mobile payment platforms. They are throwing a lifeline to the technology employees that Snapdeal has laid off.
The startups in India has been seeing a lot of restructuring and wrap ups as competition gets intense and foreign funding dries up. The restructuring efforts have led to hundreds of employees being handed pink slips. In that context, Snapdeal’s layoff of 600 employees seems justified. But interestingly, there are other startups ready to absorb those employees. . This is exactly what is happening at Paytm and Mobikwiik which are essentially mobile payment platforms. They are throwing a lifeline to the technology employees that Snapdeal has laid off.
Paytm’s Vijay Shekhar tweeted: ? @vijayshekhar Hello, Tech/Product ppl in Delhi NCR, feeling heat of business restructuring?
We welcome you @Paytm and @PaytmMall with open arms. 9:19 AM – 24 Feb 2017. 122 122 Retweets 241 241 likes
It may be recalled that , 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. Paytm which gained the first instance advantage from the government’s demonetization move, is in an expansion mode. While the company is slated to launch its payments bank soon, it is also working on the rollout of its online market-place app PaytmMall. According to a report by the Business Standard, for the PaytmMall, the company needs to hire at least 700-1000 new professionals.
Paytm is also planning to invest nearly Rs 600 crore to expand its QR code payments system, a part of which would go into scaling up manpower. At a time when the e-commerce companies in the country are consolidating, mobile payments major Paytm said it was looking forward to hear from those who had lost their jobs to restructuring. Here’s what Paytm’s founder Vijay Shekhar Sharma wrote on Twitter on Friday:
Similarly, another mobile payment company Mobikwik also said it was looking to pick up talent from those who had lost their jobs recently. “We need people in tech, marketing and business development. We also have positions open in Bengaluru where we are setting up an office,” Mobikwik CEO Bipin Preet Singh, was quoted in the aforementioned article.