Friday, April 19, 2024
Outlook India
Outlook Business

Meesho Lays Off 251 Employees: Report

The company is backed by the Masayoshi Son-led Japanese conglomerate SoftBank

Meesho Lays Off 251 Employees: Report
POSTED ON May 05, 2023 10:12 AM

The layoff saga continues to haunt the Indian start-up ecosystem as the e-commerce company Meesho has fired 251 employees in an attempt to maintain sustainability in its business operations. The company informed its employees about the layoff inside a town hall, this morning. 

“We have taken a difficult decision to part ways with 251 Meeshoites constituting 15% of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability,” the company said in a statement. 

According to a report by the Economic Times (ET), Vidit Aatrey, the co-founder and CEO of Meesho said that the company made some judgment errors in terms of hiring staff. In an internal note to employees, he said, “At the same time, we could have run our org structure in a more effective and lean manner overall. Our spans and layers were inflated, and this could have unintended consequences on our speed to execute. While we are confident that Meesho's business will stay strong, the economic reality is here to stay. We are now faced with the hard truth of aligning our people costs with the new projections for our business.”

“I want to reiterate that the decision around who is impacted has nothing to do with performance, and only to do with our business reality. That we are losing the best, hard-working talent as a result of this decision is not lost on me,” he also added.

The company is backed by the Masayoshi Son-led Japanese conglomerate SoftBank. 

This is Meesho’s second round of layoffs, after it fired 150 employees to restructure its Farmiso grocery business last year. 

  • Related Articles

    Generative AI is the company's latest step towards its innovation roadmap

    Zoho Joins The AI Bandwagon, Integrates OpenAI with Zia

    The privacy-first browser has built-in data and activity blockers to protect against user tracking

    Zoho Launches Privacy-Centered Web Browser, Ulaa

    The AI-enabled chat assistance makes it possible to customise recipes, offer support and suggestions, empowering anyone to begin cooking Integrates ChatGPT Into Home Appliances