Indian Clothing And Fashion Start-Up Meesho Lays Off 15% Of Its Employees
E-commerce firm Meesho has laid off 251 employees constituting 15 per cent of its workforce to cut costs and as part of its efforts to achieve profitability, a top company official said on Friday.
Meesho Founder and CEO Vidit Aatrey in an email to employees informed about the decision and announced that all the affected employees will get one month extra severance pay beyond the notice period as well as ESOPs irrespective of the period they have been with the company.
"We are reducing the size of the Meesho workforce by 15 per cent, affecting 251 employees," Mr Aatrey said in an internal email.
He said that the company grew 10 times from 2020 to 2022 which was aided by Covid tailwinds and aggressive investments.
"Even as we tracked our plans, the macro climate undeniably and considerably changed. As a result, we have had to accelerate our timeline to profitability as part of Project Redbull, while readjusting our GMV growth goals to 30 per cent YoY.
"While our cash reserves buffer us well for these harsh circumstances, we need to stay highly prudent on the cost front," Mr Aatrey said.
A recent report by Jefferies had said that Meesho is already contribution-margin positive (pre-marketing and indirect spends) and the company is nearing zero cash burn and is on track to achieve EBITDA breakeven this year.
When contacted, the company spokesperson said: "We have taken a difficult decision to part ways with 251 Meeshoites constituting 15 per cent of the employee base, as we look to work with a leaner organizational structure to achieve sustained profitability."
The spokesperson said that the company is committed to ensure all those impacted have its full support and will be provided a separation package that includes a one-time severance payment of 2.5 to 9 months (depending on tenor and designation), continued insurance benefits, job placement support and accelerated vesting of ESOPs.
"We remain grateful for their contributions in building Meesho," the spokesperson said.
Â
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
