ShopClues lets go 50% of its workforce
Gurugram-based online marketplace ShopClues has let go about 50% of its workforce, as the company faces an uncertain future. As per an ET report, ShopClues has handed pink slips to about 150-200 employees.
The report stated that the company was letting go of people for “strictly business” reasons. It is possible that ShopClues may not offer a severance package to the staff being asked to leave.
A source told ET, “If you are fired today, you would get pay till today (July 18) and there is no standard severance pay being given to these people.”
The latest news of layoffs comes as the online marketplace has not been able to find a buyer after months of negotiations with bigger rivals like Paytm Mall and Snapdeal. Apparently, ShopClues was seeking a valuation of $300-350 Mn —which is a steep drop from its $1.1 Bn valuation billion in early 2016.
As per the report, the company was running out of cash weeks after talks of a potential sale to Snapdeal collapsed on account of substantial pending liabilities on its balance sheet, including tax and money it owes its vendors, besides a marked fall in the number of orders. The organization had also seen the exodus of around 600 employees in April who left to join other companies. More layoffs may be in the offing as part of drastic cut-down in overall team size.
Once a unicorn, the online marketplace has steadily seen a dip in its fortunes and with the current round of layoffs, the future does not look very promising as well.