Indian e-commerce major Snapdeal has strongly denied the report of scale down in operations which was published this morning in the ET. In an emailed statement given to The Tech Portal, Snapdeal termed the report baseless and misleading and claimed to be witnessing strong growth across all their markets.
In the said report, ET had made claims that Snapdeal planning to scale down its operations in its few regional offices including the major ones in Mumbai, Bangalore, Kolkata, and Hyderabad.
Citing unnamed people within the company, ET also suggested a possibility of shut down of Snapdeal’s few offices in next 6 months if it fails to raise a fresh round of funding.
Reacting to the report, Snapdeal has said in a statement,
The statement presents a stark contrast to the claims made in the ET report according to which the company has asked many of its other employees to relocate to Delhi head office prompting them to resign.
It had also cited a senior executive of the company who said that the employees who were asked to relocate and failed to do so, have been given severance packages for two months.
In addition to this, the report also suggested that some of the Snapdeal employees also left the company due to impossible demands of the company from employees regarding its performance improvement plan.
Back in February, ET had also reported that the company had placed around 200 employees on notice and asked them to go through a 30-day Performace Improvement Plan.
The ET report, however, also cited a spokeswoman of Snapdeal who denied the reports of scale down of Snapdeal operations and leaving of employees. The statement in the ET read,
“We are relocating all our NCR-based team members to our Gurgaon campus, as the lease on other smaller NCR based locations comes to an end. The capacity in the Gurgaon campus has been designed accordingly. Any team members choosing to leave for their individual reasons receive all payments due to them per their employment contract.”
Earlier this year, Snapdeal’s parent company Jasper Infotech had raised $200 million from Ontario Teachers’ Pension Plan and Singapore-based investment entity Brother Fortune Apparel.