Bengaluru-based fintech firm Clear, formerly known as ClearTax, has laid off 16% of its workforce in a move the company describes as part of a “strategic organisational restructuring.”
The layoffs, which took effect on August 1, 2025, have disproportionately impacted freshers and recent campus hires, many of whom had joined the company just weeks earlier.
While Clear officially confirmed the 16% figure, insider sources suggest the actual number may be closer to 20–25%, affecting around 145 employees across departments.
The decision has sparked widespread concern, especially given the timing—midway through India’s peak tax-filing season, when demand for Clear’s services typically surges.
ClearTax Layoffs: Freshers Bear the Brunt
Among those affected are dozens of engineering graduates from top IITs, many of whom had accepted Clear’s offer during Day 1 campus placements.
Several took to social media to express their frustration and disappointment, describing the layoffs as abrupt and unfair.
Anoop Singh, an IIT-Guwahati graduate, wrote, “To have this opportunity revoked before I even had a real chance to prove my long-term value—feels profoundly unfair.”
Others echoed similar sentiments, with one IIT-Kanpur graduate noting that they had turned down other offers and were barred from sitting for additional campus interviews after accepting Clear’s offer.
Some interns who had received full-time offers also reported that their offers were rescinded, adding to the distress among early-career professionals.
Company’s Response and Support Measures
Clear has acknowledged the impact of the layoffs and stated that affected employees would receive enhanced severance packages, continued health insurance, and outplacement assistance through outreach to industry partners.
A spokesperson said, “We recently undertook a broader strategic organisational restructuring, impacting around 16 percent of our workforce, including a small number of early-career employees”.
Despite these support measures, many affected employees remain concerned about their career prospects, especially in a hiring market that has become increasingly cautious amid broader startup sector cost-cutting.
Financial Performance and Funding Challenges
The layoffs come at a time when Clear’s financial performance is showing signs of improvement.
In FY24, the company’s operating revenue nearly doubled, rising 93% to ₹209.84 crore, while losses narrowed by 59% to ₹96.24 crore.
However, Clear (formerly known as ClearTax) has not raised fresh funding since its Series C round in October 2021, creating pressure to optimize costs and streamline operations.
Clear has raised $140 million to date from prominent investors including Founders Fund, Sequoia Capital, Stripe, and Elevation Capital.
The company, incubated in Y Combinator, has evolved from a tax-filing platform into a broader fintech provider offering services across finance cloud, compliance cloud, and supply chain cloud.
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