The layoff saga in the Indian tech sector continues as Indian fintech firm CRED-owned Happay has cut down its employee bandwidth by 35 per cent.
According to a report by Inc42, the managers informed their team members about the prospective restructuring process.
Founded by entrepreneurs Anshul Rai and Varun Rathi, Happay has an employee bandwidth of more than 450 employees, which means it laid off 160 staff across various departments like sales, marketing, tech, product and operations.
The affected employees will be receiving three months of salary package and health insurance coverage. Additionally, they will be getting the job placement package.
“Last week more than 150 people were laid off at Happay. It was across teams, engineers in product and operations, marketing etcetera. Severance is standard, as long as notice period, so it is 3 months' salary. Apart from that they have offered to extend health insurance,” a person aware of the development told Business Today.
In 2021, CRED acquired a majority stake in Happay for $180 million. However, the company did not comment anything on the layoffs.
In the financial year (FY) 2021-22, CRED registered Rs 393.3 crore in revenue from operations. However, it also bagged a loss of Rs 1,279 crore. It is currently valued at $6.4 billion.
The Indian tech sector witnessed massive hardships in 2022. Nearly 20,000 employees lost their jobs amid funding winter. This year has also not offered any difference. It started with Harappa, an upGrad-backed edtech laying off 60 employees. Later, companies like Swiggy, Unacademy and Byju’s also fired staff.