Vidit Aatrey, Founder and CEO, Meesho
| Photo Credit: The Hindu
E-commerce firm Meesho has laid off 251 employees constituting 15% of its workforce to chop prices and as a part of its efforts to realize profitability, a prime firm official stated on Friday, May 5, 2023.
Meesho Founder and CEO Vidit Aatrey in an e-mail to employees knowledgeable in regards to the resolution and introduced that every one the affected employees will get one month additional severance pay past the discover interval in addition to worker inventory possession plan (ESOPs) regardless of the interval they’ve been with the corporate.
“We are reducing the size of the Meesho workforce by 15%, affecting 251 employees,” Mr. Aatrey stated in an inside e-mail.
He stated that the corporate grew 10 instances from 2020 to 2022 which was aided by COVID tailwinds and aggressive investments.
“Even as we tracked our plans, the macro climate undeniably and considerably changed. As a result, we have had to accelerate our timeline to profitability as part of Project Redbull, while readjusting our GMV growth goals to 30% YoY.”
“While our cash reserves buffer us well for these harsh circumstances, we need to stay highly prudent on the cost front,” Mr. Aatrey stated.
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A current report by Jefferies had stated that Meesho is already contribution-margin optimistic (pre-marketing and oblique spends) and the corporate is nearing zero money burn and is on observe to realize Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) breakeven this 12 months.
When contacted, the corporate spokesperson stated: “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 spokesperson stated that the corporate is dedicated to make sure all these impacted have its full assist and will probably be supplied a separation bundle that features a one-time severance cost of two.5 to 9 months (relying on tenor and designation), continued insurance coverage advantages, job placement assist and accelerated vesting of ESOPs.
“We remain grateful for their contributions in building Meesho,” the spokesperson stated.
