New Delhi [India], Feb. 13 : After reports of an enormous cost-cutting by prominent e-commerce company Snapdeal surfaced the Internet, a spokesperson of company revealed that it is not doing any such cost-cutting; rather is looking at better allocation of funds through cost-saving measures.

Over the past two days, the media reports have been filled with Snapdeal supposedly dismissing over hundreds of employees due to budget restrictions and cost-cutting mechanisms to cut costs and downsize its team.

In response to these claims, a spokesperson at the e-commerce firm in an email confirmed that these reports are mere speculations, and is giving readers a 'distorted impression' of the ongoing measures.

"On our journey towards profitability, it is imperative that we continue to drive efficiency in our business, which enables us to pass on the value to our consumers and sellers. As in the past, and like all good companies do, we will continue to assess resource allocation in furtherance of our goals of enhancing customer and seller experience while driving high quality growth," the spokesperson explained.

In September 2016, Snapdeal underwent a massive restructuring and marketing exercise. Under the same, a new logo was introduced, along with a new tagline. Furthermore, it initiated an investment of Rs. 200 crore, solely focussing on enhancing the marketing campaign.

Prior to its revamp, Snapdeal recorded a loss of Rs. 2,960 crore during the financial year ending March 31, 2016, which is almost double the loss incurred in the previous financial year.

Moreover, during the online sales that took place around Diwali, last year, Snapdeal sold lesser units, in comparison to Amazon and Flipkart, as reported by Moneycontrol. (ANI)