Big Indian e-commerce retailers Flipkart and Snapdeal have been looking at ways to cut down costs by reducing hiring and curtailing discounts and advertising. The Mint reported, citing sources, that both the companies have cut down on hiring since March this year.
Bengaluru-based Flipkart has reportedly put on hold hiring people for various senior positions, including vice-presidents, and has also stopped going to B-schools for hiring fresh talent.
At the same time, New Delhi-based Snapdeal is planning to lay off about 10 percent to 15 percent of its workforce and would not replace them, besides increasing targets for its employees.
The two companies have lost significant market share to competitor Amazon India in recent times.
Flipkart's workforce rose to 35,000 people from 14,000 in the last one and half years, of which more than half work in the company's logistics business eKart. Snapdeal also doubled its staff during the same period, the Mint report added.
Flipkart recorded a net loss of Rs. 2,000 crore for the financial year ended March 2015. The e-commerce firm spent "heavily" in a bid to remain ahead of its rivals Amazon India and Snapdeal, the Economic Times reported. Snapdeal's owner Jasper Infotech reported a loss of Rs. 1,328 crore during the same time.
When contacted by International Business Times, India, a spokesperson for Flipkart denied that the company was considering to cut down on hiring. Snapdeal did not respond.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]