E-commerce agency Meesho has laid off 251 workers constituting 15 per cent of its workforce to lower prices and as a part of its efforts to obtain profitability, a prime firm official mentioned on Friday.
Meesho Founder and CEO Vidit Aatrey in an electronic mail to workers knowledgeable concerning the determination and introduced that each one the affected workers will get one month further severance pay past the discover interval in addition to ESOPs no matter the interval they’ve been with the corporate.
“We are reducing the size of the Meesho workforce by 15 per cent, affecting 251 employees,” Aatrey mentioned in an inside electronic mail.
He mentioned 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 per cent YoY.
“While our money reserves buffer us properly for these harsh circumstances, we’d like to keep extremely prudent on the fee entrance,” Aatrey said.
A recent report by Jefferies had said that Meesho is already contribution-margin positive (pre-marketing and indirect spends) and the company is nearing zero cash burn and is on track to achieve EBITDA breakeven this year.
When contacted, the company spokesperson said: “We have taken a tough determination to half methods with 251 Meeshoites constituting 15 per cent of the worker base, as we glance to work with a leaner organizational construction to obtain sustained profitability.” The spokesperson said that the company is committed to ensure all those impacted have its full support and will be provided a separation package that includes a one-time severance payment of 2.5 to 9 months (depending on tenor and designation), continued insurance benefits, job placement support and accelerated vesting of ESOPs.
“We stay grateful for his or her contributions in constructing Meesho,” the spokesperson said.
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
