Snapdeal calls off Flipkart merger, to layoff 80 percent staff

Snapdeal recently called off the USD 950 million-takeover (over Rs 6,000 crore) by Flipkart, which could possibly have been the largest deal in the Indian e-commerce space.

According to TimesNow, Snapdeal is likely to layoff 80 percent of its staff. The firm plans to layoff around 1000 employees out of the current 1200. This means after the massive layoffs, the company will be left with just 200-250 employees.

 In June last year, the company had cut down its workforce from 9000 employees to 1200 employees.

Once a leading player in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from rivals, Amazon and Flipkart. Its valuation plunged from a peak of about USD 6.5 billion in February 2016 to about USD 1 billion during the latest round of discussions.

"...we respect the decision to pursue an independent strategy. We look forward to the results of the Snapdeal 2.0 strategy, and to remaining invested in the vibrant Indian e- commerce space," a SoftBank spokesperson told PTI.

According to company sources, the talks ended on account of the complexity of the deal that came with multiple conditions, right from indemnity to a non-compete clause. These did not find favour with the founders of the Gurugram-based online marketplace, they added.

With inputs from PTI