Snapdeal founders take 100% pay cut, write letter to employees about job cuts
A day after reports of Snapdeal set to lay off 500 to 600 employees from the company, co-founders Kunal Bahl and Rohit Bansal have reportedly taken a 100 percent salary cut.
The reports have suggested that many others at Softbank owned Snapdeal have ‘proactively’ offered to significantly reduce their compensation, according to a report in the Financial Express.
Snapdeal co-founder have also sent out an e-mail to his employees, in which aimed that the firm, as well as the whole industry, had started making mistakes in the past couple of years.
Bahl wrote in the e-mail, “We started growing our business much before the right economic model and the 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.”
Bahl, in the e-mail also took examples of global tech majors like Apple, Tesla, Amazon, Netflix, Lego and Spicejet who, according to Bahl, “painted themselves into a corner many times over” before they could taste success. Bahl claimed that the company is being reorganised into a lean, focused and entrepreneurial company.
He wrote in the letter, “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.”
The move by Snapdeal comes at a time when the firm is exploring ways to optimize its costs. According to sources, it will be laying off 600 people.
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