E-commerce startup Meesho is the latest company to join the list of tech layoffs. According to an online report, the e-tailer has laid off 251 employees.
As reported by The Economic Times, Meesho has fired 251 employees which accounts to 15% of its total team strength. As per the report, the company laid off its employees ‘in a bid to turn sustainable amid a larger reset in the technology industry’.
“We have taken a difficult decision to part ways with 251 Meeshoites constituting 15% of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability,” the SoftBank-backed firm said in a statement.
This is not the first time that Meesho has fired its employees. In April last year, the e-commerce startup fired 150 employees as part of the restructuring of its grocery business — Farmiso.
“In a message to employees, Meesho’s co-founder and CEO, Vidit Aatrey, acknowledged that the company had made “judgment errors” by over-hiring before the curve. He also noted that Meesho could have operated with a more efficient and streamlined organizational structure. The company’s spans and layers were bloated, which may have negatively impacted its ability to execute tasks quickly and efficiently,” added the report.
Aatrey further said that the decision taken is completely business driven and it has nothing to do with the performance of the impacted employees.
Shopify laid off 20% of its workforce
Recently, another online shopping platform Shopify also fired 20% of its workforce. Shopify, the e-commerce company, is divesting its logistics unit to Flexport, a supply chain technology company, and the recent job cuts are associated with this transition.
Under the agreement, Shopify will receive stock that equates to approximately a 13% equity stake in Flexport, bringing its ownership to the high teens, according to CNBC. As of December 31, 2022, Shopify had over 11,600 employees. However, the company had previously laid off 1,000 employees in recruitment, support, and sales roles last year.
As reported by The Economic Times, Meesho has fired 251 employees which accounts to 15% of its total team strength. As per the report, the company laid off its employees ‘in a bid to turn sustainable amid a larger reset in the technology industry’.
“We have taken a difficult decision to part ways with 251 Meeshoites constituting 15% of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability,” the SoftBank-backed firm said in a statement.
This is not the first time that Meesho has fired its employees. In April last year, the e-commerce startup fired 150 employees as part of the restructuring of its grocery business — Farmiso.
“In a message to employees, Meesho’s co-founder and CEO, Vidit Aatrey, acknowledged that the company had made “judgment errors” by over-hiring before the curve. He also noted that Meesho could have operated with a more efficient and streamlined organizational structure. The company’s spans and layers were bloated, which may have negatively impacted its ability to execute tasks quickly and efficiently,” added the report.
Aatrey further said that the decision taken is completely business driven and it has nothing to do with the performance of the impacted employees.
Shopify laid off 20% of its workforce
Recently, another online shopping platform Shopify also fired 20% of its workforce. Shopify, the e-commerce company, is divesting its logistics unit to Flexport, a supply chain technology company, and the recent job cuts are associated with this transition.
Under the agreement, Shopify will receive stock that equates to approximately a 13% equity stake in Flexport, bringing its ownership to the high teens, according to CNBC. As of December 31, 2022, Shopify had over 11,600 employees. However, the company had previously laid off 1,000 employees in recruitment, support, and sales roles last year.
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