E-commerce marketplace Snapdeal has put around 55 people on a 3-month long furlough, and has not renewed agreements with several of its contract employees, the Economic Times reported. Snapdeal has about 750 full-time employees, and the number of people furloughed represent around 7% of its workforce, the ET report said. A Snapdeal spokesperson confirmed to MediaNama that the company had furloughed some employees, and we are awaiting more details from the company.
The move has reportedly affected employees across teams from product to marketing and sales, and they will receive their contractual dues and medical insurance for themselves and their families. It isn’t clear for how long they would receive pay and insurance, and we have asked Snapdeal about it.
India’s e-commerce sector was among the most badly hit owing to multiple lockdowns in the country, starting from March. Snapdeal rival Amazon earlier this month said that the lockdowns in India had the “biggest impact internationally” on them. For around 2 months, e-commerce companies were only allowed to deliver essential services, although, the restrictions have now been somewhat lifted. Food delivery platforms were also completely banned in some places.
Several start-ups have announced layoffs. Just this morning, Uber announced that it had laid off 600 employees in India, accounting for one fourth of the company’s approximately 2,400-strong workforce in the country. Meanwhile Ola has decided to lay off 1,400 employees in India. Swiggy has similarly laid off 1,100 employees, while Zomato let go of 13% of its entire workforce, which could impact up to 520 of its employees. ShareChat laid off 101 employees last week.