It seems like the cutthroat competition among startups and failure of getting investors is a huge problem in India. To minimize the losses, many heavily funded e-commerce companies in India are laying off employees. The recent case was seen with Shopclues and Rivigo. Although these companies are heavily funded, still they are laying off the employees. Many students from elite colleges in India like IIMs, IITs and NITIE were given job offers from Rivigo. But due to the cutthroat competition and minimizing the losses, the company had to roll back the job offers.
E-Commerce Company ShopClues recently removed 200 employees from their jobs. This online segment company has to work hard to stay in the market. According to sources, the company was looking for investors and buyers, but due to lack of a deal, Shopclues had to remove 200 people for cutting their costs. Due to the peak level of competition, the order of the company was falling continuously and not only shop clues but many other small e-commerce companies were also finding it difficult to get expenditure. Among all, there was hope for Shopclues to join hands with Snapdeal, but due to the failure of the deal, the hope was over and the company had to make a big cut.
Another case is of Rivigo, this logistic firm despite getting huge investments in the E-round removed 70 of its employee and rolled back several campuses offers too. Rivigo recently got funding of $65 million dollars but despite getting huge investments, rolling off job offers and firing employees is very tragic seen in the market. The future of e-commerce startups in India doesn’t look so bright due to many strong rivals.
Now the question arise why many e-commerce and logistic companies are laying off their employees? It is being said that when the company or a startup does not get any investors, buyers or already has several rivals in the market, the company has to take several steps to reduce the cost which will have hugeimpact on their employees. Just 500 employees were working in Shopclues, out of which, 200 employees have been fired according to the report.