Meesho, the Indian e-commerce startup that connects sellers with customers through social media platforms, has announced that it will be laying off around 251 employees, which accounts for 15% of its workforce. This move comes after the company fired about 150 employees in April 2022 as part of a restructuring plan for its grocery business, Farmiso. However, some media reports claimed that the total number of impacted employees was around 400 at the time.
In a note to employees, Meesho CEO Vidit Aatrey explained that the layoffs were necessary to match the company’s people costs with its new business projections and make it more sustainable. He admitted that Meesho had made “judgment errors” by hiring ahead of the curve, while the organizational structure could have been run more efficiently. “Our spans and layers were inflated, and this could have unintended consequences for our speed to execute,” he said.
Aatrey also emphasized that Meesho’s business would continue to thrive despite the layoffs. “Our business fundamentals remain strong, and we are well-positioned for future growth. However, economic reality is unavoidable, and we need to make some tough decisions to ensure the long-term success of our company,” he said.
The layoffs are expected to affect employees across departments, including technology, product, marketing, and operations. The company has assured that those affected will receive severance pay, notice periods, and assistance in finding new jobs.
Meesho was founded in 2015 by Aatrey and Sanjeev Barnwal. The company has raised $1.08 billion in funding to date and is valued at $8.5 billion. It enables small businesses, entrepreneurs, and individuals to sell their products through social media platforms such as WhatsApp, Facebook, and Instagram.
In conclusion, Meesho’s decision to lay off 15% of its workforce is part of a larger restructuring plan aimed at making the company more sustainable in the long run. While this may come as a setback for those affected, the company’s leadership is confident that Meesho will continue to grow and thrive in the future.
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