Layoffs continue in the startup space

The trend of letting go employees continues in the startup space. Some employees from India working for the Indonesia-based startup, Lummo, have been asked to leave as per media reports. The Company states that only a single digit number of employees have been affected, who were working on contract with external IT services companies.

The Company has stated that it is working with the team members who have been impacted to find them alternative roles via its network or place them in other firms.

The less than three-year old startup that focuses on small and medium enterprises has decided to trim its workforce owing to the prevailing economic situation. However, the Company will not stop developing and expanding LummoShop, its e-commerce solution product for entrepreneurs. It is reported that about 100 employees from Indonesia, of its 500-strong workforce, may have been affected by this layoff.

Founded by Krishnan Menon and Lorenzo Peracchione, Lummo has the backing of investors such as Tiger Global and Sequoia Capital India in addition to CapitalG.

In India, Rupeek, the Bengaluru-based gold loan providing company, has let go around 200 members of its workforce from various departments. At least 10 per cent of the team, which has about 1300 members, is said to have been laid off.

Rising inflation, the Ukraine war and the need to cut costs have been cited as the reasons for this layoff. The objective is to go lean in order to ensure sustainability and growth, as communicated to staff.

Yet another tech startup, Bird, an electric scooter rental company, has decided to trim its workforce. The startup has decided to let go about 23 per cent of its team.

The company wishes to expand its services beyond the 400 cities that it is operating in presently. It had to resort to job cuts in order to check spend and ensure profitability.