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News : Snapdeal Staff Fear Job Cuts, Protest at Call Centre
Bengalaru, India, February, 2016 -- Online marketplace Snapdeal faced protests from employees at its contact centre on Wednesday. The employees alleged that the company was looking to outsource customer support duties and cut jobs.
According to sources, Snapdeal had started slashing employee count at its contact centre since November last year, bringing down the headcount to about 600 from a peak of 1,800-2,000. Entry and junior level employees in the contact centre have been affected the most by the latest developments.
The move initiated by the Gurgaon-based e-commerce player is in line with what its peers have been doing over a period of time - outsourcing customer support duties to third-party operators in a bid to cut costs as fresh funding becomes tough to garner. When contacted by TOI, Snapdeal said it has only put 200 employees on a performance improvement plan (PIP) and the ones who have refused to come under the PIP programme are protesting.
"There have been no layoffs at Snapdeal. As part of the ongoing performance management and development programme, some team members at our contact centre have been offered a PIP. While many team members have opted for this opportunity to improve the requisite skills sets, some have desired not to undertake it and have instead decided to move on voluntarily. The PIP process is expected to cover about 200 team members," a Snapdeal spokesperson told TOI in an emailed response.
A source directly aware of the development told TOI, "This has been an ongoing process for some time now. Keeping a huge head count on its payroll for customer support services does not make sense at this point of time when third-party sourcing would be cheaper. This is a normal practice at many large e-commerce companies such as Flipkart and Paytm, among others." Another person in the Snapdeal's human resource department confirmed the same without divulging further details. During the day, employees of the contact centre protested outside Snapdeal's Sarita Vihar office in the capital resulting in chaos outside the campus.
Snapdeal's spokesperson confirmed to TOI that its office had witnessed employee protest during the day and the company HR head Saurabh Nigam had been trying to initiate a dialogue with the protesting employees.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Technology
Published: Monday, February 29, 2016