Meesho To Fire 15% Of Workforce In The New Round Of Layoff, Know Reasons

5 Dariya News

05-May-2023

Many big companies are announcing layoffs one after another for their profitable growth and now this time it is Meesho, an Indian e-commerce platform. Meesho has recently announced the new round layoff in which it has decided to fire 15% of the workforce consisting of 251 employees due to the challenging macroeconomic environment as said by the CEO Vidit Aatrey. 

The employees were informed about the layoff earlier on Friday, 5 May 2023 via an email sent by the CEO. The email said, “As leaders, we made judgement errors in over-hiring ahead of the curve. At the same time, we could have run our org structure in a more effective and lean manner overall. Our spans and layers were inflated, and this could have unintended consequences on our speed to execute.” 

Also Read: IBM spinoff Kyndryl to layoff employees for 'profitable growth'

The layoff was also confirmed by a Meesho spokesperson which said, “We have taken a difficult decision to part ways with 251 Meeshoites, constituting 15 percent of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability.” 

It is also said that the laid off workers will be provided a ‘separation package’ that includes a one-time severance payment of 2.5 to 9 months depending upon their tenor and designation. Meesho is also looking forward to the measures to cut costs as the company recently dropped its cloud expenses by 50%.  

It is not the first time, Meesho has already laid off several employees in the first two rounds and it is the third round of layoff. Meesho laid off 150 employees at the same time in April last year and in August, nine months earlier it laid off 300 employees.

Also Read: Meta now pauses remote work hirings after mass layoffs