As part of its efforts to operate with a smaller organizational structure and achieve continuous profitability, the company announced in a statement that it had made the “difficult decision” to part ways with 251 Meeshoites, who made up 15% of its worker base. An e-commerce startup with headquarters in Bengaluru, Meesho fired 251 workers in its third wave of layoffs in less than a year. This represents 15% of the team’s overall strength.
In April of last year, the Meesho e-commerce start-up fired 150 workers after changing the name of its supermarket division from Farmiso to Superstore. After that, it let go of another 300 employees in August along with the closing of its grocery store.
Meesho stated on Friday that a new wave of employment cuts resulted in the termination of 251 employees. Meesho laid off 150 employees in the previous year. At a time when companies are finding it difficult to raise money, this has happened. The time frame is known as “funding winter.” Many startups have reduced employment to cut costs in order to survive this winter.
As we strive to operate with a reduced organizational structure to achieve sustainable profitability, we have made the tough choice to part ways with 251 Meeshoites, who make up 15% of the staff base.
All those affected will receive a separation package from us that includes a one-time severance payout ranging from 2.5 to 9 months (depending on the tenor and classification), continuous insurance coverage, assistance with finding employment, and accelerated vesting of ESOPs. We are dedicated to ensuring that everyone affected has our full support. We are still appreciative of their assistance in creating Meesho, the spokesman said.
Meesho is reaching zero cash burn and is aiming to achieve EBITDA breakeven over the course of CY23. The seven-year-old e-commerce business was the subject of a report from Jefferies last week. According to the analysis, the firm is expected to generate a GMV of $4.5 billion in 2022, a nine-fold increase from the previous year.
The audit also stated that the corporation has been employing aggressive cost-cutting and cash-burning strategies.
Before going public in 2023, the business plans to achieve Ebitda-positive status by the middle of that year, according to co-founder Vidit Atrey. Meesho is worth $4.9 billion, according to Tracxn. Fidelity Management and Eduardo Saverin’s B Capital Group led a Series F fundraising round for it.
