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ShopClues fires 50 employees across multiple functions

The firm’s employee strength is believed to be between 1,150-1,200. The development was first reported by an anonymous Twitter handle @Corporatekumar.

, ET Bureau|
Updated: Mar 23, 2018, 11.47 AM IST
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BCCL
ShopClues fires 50 employees across multiple functions
ET, however, was unable to verify the exact functions impacted by the retrenchments.
NEW DELHI: ShopClues has laid off between 45-50 employees across multiple functions, reports ET. When contacted by ET on Thursday, a company spokesperson confirmed the development, but said that the layoffs were made taking into account individual performances and had impacted “less than 4% of the company’s overall workforce”.

“Unfortunate as it might be, the rigours of a merit-based system requires that we keep the bar high on individual performance. As we wrap up the review cycle for FY 2018, this decision has impacted less than 4% of the total workforce,” the company spokesperson said.

The firm’s employee strength is believed to be between 1,150-1,200. The development was first reported by an anonymous Twitter handle @Corporatekumar.

ET, however, was unable to verify the exact functions impacted by the retrenchments.

The layoffs comes at a time when the Tiger Global Management and GIC-backed company is facing, and potentially preparing to stave off, increased competition from two of India’s biggest ecommerce companies — Flipkart and Amazon.

Additionally, with Snapdeal also pivoting to a pure marketplace model with a focus on non-branded products, comparisons have been drawn with ShopClues, which largely caters to demographies beyond the metros.

For fiscal 2017, the online managed marketplace saw its total revenue remain flat, recording just a 5% jump to Rs 188 crore in FY17, as per its financials presented to the Registrar of Companies, and sourced through business intelligence platform Tofler. Its loss for the same period went down by 13% to Rs 332 crore, as it reduced its advertising and promotional expenditure from Rs 236 crore to Rs 188 crore.

Last month, the company was reported to have raised a bridge round, estimated at $1 million, from early investor Unilazer Ventures, the investment firm founded by media total Ronnie Screwvala. According to media reports, the Indian arm of Clues Network Inc, has allocated about 1,027 equity shares to its Indian subsidiary for raising this round, as per business research platform Paper.vc.

Also Read

Snapdeal inches closer to acquiring ShopClues

ShopClues lays off 200 people to cut costs

Singapore-based e-commerce platform Qoo10 acquires ShopClues in all-stock deal

Snapdeal, Shopclues, others form lobby group

ShopClues trims losses to Rs 208 crore

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