On May 5, 2023, Meesho, an e-commerce startup, made the announcement that it had laid off 251 employees in a fresh round of job cuts. This is the second time the company has had to let go of employees, with about 150 being laid off the previous year. These job cuts come at a time when many startups are struggling to raise funds. This difficult period has been dubbed the ‘funding winter’. In order to survive this period, many startups are cutting costs, including jobs.
Meesho stated that it had made a difficult decision to let go of 15 percent of its employee base, which consists of 251 Meeshoites, to work with a leaner organisational structure and achieve sustained profitability.
Even though it was a difficult decision to let go of 251 employees, Meesho has pledged to extend its full support to all those affected by offering them a separation package that comprises a one-time severance payment ranging from 2.5 to 9 months, contingent upon their tenure and job designation, as well as continued insurance benefits, assistance in job placement, and expedited vesting of employee stock ownership plans (ESOPs).
In a report released last week, Meesho revealed that it had driven a gross merchandise volume (GMV) of $4.5 billion in 2022, a nine-fold growth over the previous year. The report also stated that the company had been resolutely cutting costs and reducing its expenses.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since eight years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)
