Competition is heating up; rivals like Amazon and Flipkart are gaining ground; Snapdeal is under pressure to perform, and it’s passing this pressure on to the employees.
The e-commerce giant has put 200 employees on a Performance Improvement Plan (PIP). Under the rules of the PIP, an employee gets a month to improve or in case he doesn’t, face termination.
The move – which has caused much consternation – has seen many employees deciding to resign from the company and move on voluntarily.
“Snapdeal has over one million daily transacting users on its ecosystem and all our efforts are focused on becoming part of the daily life of millions of Indians,” a Snapdeal spokesperson was quoted by agencies as saying.
Following the notification, some employees staged a protest outside a Delhi-based Snapdeal call centre.
Snapdeal has been bringing down the number of employees at its contact center over the last few years – from a peak of roughly 1800 personnel down to just about 600 now – and instead passing on work to cheaper third-parties.
E-commerce giants in the recent past are looking to restructuring their business models to run leaner operations.