Indian e-commerce major Snapdeal has put 200 of its employees on a performance improvement notice at a time whencompetition is heating up in the sector and adoption of leaner business models is fast gaining currency.
Under the performance improvement plan,employees have been given 30 days to improve performance, and failure to improve will result in termination of services.
While the highly-competitive yet booming e-commerce industry in India has been credited with the creation thousands of jobs in the country, ballooning losses of companies, that are still being run on investor money, have raised concerns around profitability of these firms. This is resulting incompanies taking the restructuring route.
The company,which has a team of some 8,000 people across the country, maintains that there have been no lay-offs,according to a report by Press Trust of India quoted in Livemint.
According to reports, Snapdeal has started reducing employee count at its contact centre from November last year, bringing it down to about 600, from a peak of 1,800-2,000.
The recent notification led to some agitated employees demonstrating outside a Delhi-based call centre of Snapdeal. The protest then intensified with the employees moving a plea to the labour department to intervene in the matter and help them get their jobs back, as per a report in The Economic Times.