E-commerce Company Meesho Lays Off 15% of Workforce to Achieve Profitability

E-commerce Company Meesho Lays Off 15% of Workforce to Achieve Profitability

Meesho, an Indian e-commerce company, has laid off 251 employees, or 15% of its workforce, as part of its efforts to achieve profitability. The company’s founder and CEO, Vidit Aatrey, announced the decision in an email to employees, stating that affected employees would receive one month extra severance pay beyond their notice period as well as ESOPs, regardless of their tenure with the company.

Reasons for Layoffs

Aatrey cited the company’s growth from 2020 to 2022 and Covid tailwinds and aggressive investments as reasons for the layoffs. However, he also noted that the macro climate had changed considerably, necessitating the company’s acceleration of its timeline to profitability as part of Project Redbull while readjusting its GMV growth goals to 30% YoY. Aatrey emphasized the need for prudence on the cost front, despite the company’s cash reserves.

Company Response

A recent report by Jefferies indicated that Meesho is already contribution-margin positive and nearing zero cash burn, with plans to achieve EBITDA breakeven this year. The company spokesperson stated that the decision to lay off employees was difficult but necessary to work with a leaner organizational structure and achieve sustained profitability. Meesho has committed to providing separation packages, including a one-time severance payment, continued insurance benefits, job placement support, and accelerated vesting of ESOPs, to all affected employees. The spokesperson expressed gratitude for their contributions in building the company.


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