Mojocare, a digital wellness platform, is facing significant challenges and has decided to shut down its Kolkata office, according to sources. Approximately 40-45 employees have either resigned or been laid off as a result of this decision.
The company allegedly asked even senior managers from the Kolkata office to tender their resignation that left employees surprised and disheartened.
As reported by Business Today, an anonymous employee who was working from home due to personal reasons, mentioned that they were asked to resign in May, as the company mandated work from office. This sudden request came as a surprise since there was a prior understanding of the work-from-home arrangement between employees and employers.
The layoffs primarily affected employees from the sales and business operations because of excessive investment in sales that led to overstaffing in the department, according to sources.
However, investors reportedly expressed concerns about the company’s sustainability and advised the founders to focus on responsible growth. This led Mojocare to undergo a round of layoffs to realign its operations according to the investors’ expectations.
These recent developments come shortly after the company announced laying off around 80 per cent of its workforce, amounting to approximately 150-170 individuals.
The downsizing can be attributed to governance issues and financial irregularities that were uncovered during the company’s preliminary investigations. As a response, a consortium of investors, led by Chiratae Ventures and B Capital, who are majority stakeholders, asked to review Mojocare’s financial statements.
The setbacks faced by Mojocare reflect governance challenges and the need for financial stability within the company.