FarEye, a software as a service (SaaS) logistics start-up, has laid off 90 employees in its second round of job cuts within eight months, Inc42 reported.
The latest round of layoffs reportedly impacted employees in various departments including tech, sales, product and HRBP.
FarEye co-founder and chief executive officer (CEO), Kushal Nahata, said that the reduction in staff was necessary to align the business strategy with market demand and to continue serving customers’ business needs. He cited macroeconomic headwinds, explaining that consumers and businesses have tightened spending, which has also impacted the start-up.
FarEye has offered severance packages to the affected employees in accordance with local laws. The company has offices in several countries including India, US, UK and Dubai.
FarEye sacked around 250 employees across departments in June last year, Inc42 reported earlier. In its latest financial year, the startup's net loss rose almost three times to Rs 232.5 crore from Rs 79.8 crore the previous year. Despite a 53 per cent increase in revenue from operations to Rs 97.6 crore, expenses rose 129 per cent to Rs 361.3 crore in the same period. Employee benefit expenses accounted for 64 per cent of total expenses, with the start-up spend Rs 231.6 crore on employee salaries, provident fund (PF) contribution, gratuity and other employee welfare benefits, a 125 per cent increase from Rs 102.8 crore in the previous year.
FarEye’s latest round of layoffs is a result of macroeconomic headwinds that have tightened spending among consumers and businesses. The company’s focus on product innovation and customer solutions remains strong, and it plans to expand its reach in new industries and markets around the world. Despite the net loss, the startup’s revenue from operations has increased, and it is backed by several major investors including Microsoft’s M12 Fund.
FarEye was founded in 2013 by Nahata, Gaurav Srivastava, and Gautam Kumar, and helps solve complicated last-mile delivery issues by offering automation software that allows logistics companies to schedule and dispatch jobs, monitor execution and analyse performance in real time.
Its clients include major companies such as Tata Steel, Amway, Hilti and Domino’s Pizza. The company received $100 million in a Series E funding round led by TCV and Dragoneer Investment Group in 2021 and is backed by Microsoft’s M12 Fund, Elevation Capital, Eight Roads Ventures, and HoneyWell.
