Bengaluru: E-commerce firm Meesho laid off around 15% of its workforce on Friday citing organisational restructuring as the company looks to turn profitable in a dwindling startup funding environment.
Meesho said the layoffs affected 251 employees although affected workers will be provided with a severance package that includes a one-time severance payment of 2.5 to 9 months, continued insurance benefits, job placement support and accelerated vesting of ESOPs.
This is the second layoff at the Bengaluru-based startup. In August last year, the e-commerce firm laid off 300 employees after it shut down its grocery business Farmiso and integrated it into the core app of Meesho.
In an email to employees on Friday, Meesho’s CEO and co-founder Vidit Aatrey said the firm grew 10-fold from 2020 to 2022, supported by Covid tailwinds and aggressive investments. However, even as Meesho followed its aggressive push, the macro climate undeniably and considerably changed, he stated.
“As a result, we have had to accelerate our timeline to profitability…,” Aatrey said.
He also added that Meesho’s leadership made judgement errors in over-hiring ahead of the curve instead of running the organisation in a more “effective and lean manner overall”.
Agencies

KR Desk