Online marketplace Snapdeal is scaling down operations in its regional offices including Bangalore, Mumbai, Calcutta and Hyderabad, according to multiple people within the company, reports ETtech.

Snapdeal may even shut down few offices in next six months if it does not raise fresh funding, the source familair with the matter has told ETtech. "The accounts and vendor management teams in Bangalore have already been cut to about 45 people from 85 people a year ago. The focus has moved to the ads business," adds the ETtech report citing the source.

Some employees have been asked to relocate to Snapdeal's head office in Delhi, prompting them to resign. "In some cases (employees) have even been given severance packages for two months," said one senior executive directly involved in the retrenchment plans.

In February, Snapdeal had placed around 200 employees on notice and asked them to undergo a 30-day performance improvement plan (PIP). Most opted out as the demands of the company's performance improvement plan were almost impossible to meet said those aware of the developments within the company.

A spokeswoman for Snapdeal has denied reports of any scaling down regional operations. "We are relocating all our NCR-based team members to our Gurgaon campus, as the lease on other smaller NCR based locations comes to an end. Any team members choosing to leave for their individual reasons receive all payments due to them as per their employment contract."