Snapdeal plans for a major lay off for the second time this year. This comes in after Snapdeal on Monday announced that Flipkart will no longer buy Snapdeal. The company executives said that they are now planning to run a smaller version of the online marketplace. After the announcement, the e-commerce store on Monday revealed that it plans to lay off 80 per cent workforce.

Snapdeal founders Kunal Bahl and Rohit Bansal do not want to sell Snapdeal to Flipkart, instead have plans to independently run a smaller version of the online marketplace. In regards to that, a senior official of Snapdeal revealed to ANI on Monday that the company's management team has given verbal instructions to their department heads to prepare the list of the employees they would ask to leave. The report states, "According to sources, from last Thursday evening, Kunal Bahl and Rohit Bansal have firmly instructed their business and technical heads to restructure their teams and begin the paperwork for their layoff."

In another report, three Snapdeal employees spoke to ET and said that they have been asked to leave. They said, "Each of them had been promised retention bonuses and asked to stay back when they had earlier planned to leave for other jobs. But on Monday morning, these three employees received emails asking them to leave." "We were not given any notice," one of them said. As per reports, another employee said that the business heads have been asked to draw up lists of people to be fired.

Also Read: Snapdeal, Flipkart merger may not happen afterall

Another person aware of the Snapdeal management's plan highlights that the company may see attrition among mid and junior-level employees. The person said, "Many of them were waiting around for the retention bonus which would have come with an acquisition by Flipkart. Now there is no reason for them to be around. Over two to three months, we expect the (employee) numbers to come down to half. Also, in cases where there maybe a few layoffs, there is no reason why they wouldn't be paid three months' severance pay."

Back in the month of July, Snapdeal had over 9000 employees, but soon has a major lay off. The company asked about 7,800 people to leave without any notice. The employees were given one month's salary and one month's severance package as opposed to three month's severance pay promised in February, according to Snapdeal employees ET spoke with. Now, the company plans to chop off more employees.

Snapdeal founders Kunal Bahl and Rohit Bansal plans to run a stripped-down version of the online marketplace with funds from the sale of the firm's payments arm FreeCharge and its logistics unit Vulcan Express, two sources said to Reuters on Monday. "Typically, categories such as kid's products and fashion, automotive parts and home fitments and others do well on the platform. We saw a slump from November to February, where on the orders have not grown beyond," said a seller on the Snapdeal platform to ET. While another seller said that the company is also planning to consolidate mobile phone and electronics as a single category.