Snapdeal founders to take 100% pay cut amidst layoffs. Here’s their letter to employees.

Snapdeal CEO Kunal Bahl. Photo credit: Wikimedia.

Snapdeal today announced that it is going to lay off employees and become a leaner organization as it chases profitability. Founders Kunal Bahl and Rohit Bansal said they will take a 100 percent salary cut as they lead these reorganizations. Read Kunal and Rohit’s email to employees, obtained by Tech in Asia, here:

Dear Team,

Over the last few years, we’ve had a phenomenal journey, with many well-timed pivots and a constant drive to work towards our core mission of building India’s most reliable and frictionless commerce ecosystem. We’ve succeeded in many aspects of our journey, and also failed in a few. But that never stopped us from getting up and trying harder again. We probably hold the record for the company that got written off the most number of times by Internet pundits.

“When obstacles arise, you change your direction to reach your goal, you do not change your decision to get there.” ~ Zig Ziglar

At Snapdeal, we find ourselves at an important point in our journey – we know where we want to go and now is the time to make the choices of how we will get there.

Has our company and industry been going through a troubled time? Absolutely. Did we make errors in our execution? No doubt about that. Over the last 2-3 years, with all the capital coming into this market, our entire industry, including ourselves, started making mistakes. We started growing our business much before the right economic model and market fit was figured out. We also started diversifying and starting new projects while we still hadn’t perfected the first or made it profitable. We started building our team and capabilities for a much larger size of business than what was required with the present scale.

Ambition is critical, because that’s what motivates us to give our very best every single day – to achieve the undoable. However, a large amount of capital with ambition can be a potent mix that drives a company to defocus from its core. We feel that happened to us. We started doing too many things, and all of us starting with myself and Rohit, are to blame for it.

Both Rohit and I are taking a 100 percent salary cut.

That said, there is almost no successful company on the planet, which hasn’t gone through this phase in their lifetime – Apple, Amazon, Netflix, Tesla, Lego, Spicejet, you name it! Each one of them had painted themselves into a corner many times over before they became as wildly successful as they are today. A quick look at their stock prices over the last 15 years will show you what we’re talking about. The formula to revive the company is uncannily similar for almost all of them – focus on only your core, stop all non-core activities, reduce costs drastically, turn profitable as soon as you can, and use those profits to spur further growth and new projects. We must do the same, and there is no doubt that with the really smart folks we have in the company, we will make it something that we are all very proud of.

This also comes with some tough decisions in the short term. As part of our overall path to profitability plan that is currently in full swing, we will be reorganizing the company into a lean, focused, and entrepreneurial one. We are combining teams, reducing layers, eliminating non-core projects and strengthening the focus on profitable growth. Sadly, we will also be saying really painful goodbyes to some of our colleagues in this process. This is by far the hardest decision that we have ever taken in our lives. Our colleagues are our friends before they are co-workers, and I feel a deep sense of disappointment that we won’t be able to have them continue on this journey with us. We will do what we can to help them with their transition to their next opportunity. We take this time to express our sincere gratitude to all those who are leaving us – your contributions have helped build Snapdeal in ways big and small. With time, I am confident, that we will be able to welcome back some of our colleagues who will be leaving us at this point. And that point, we will be a self-sufficient, profitable company.