A social commerce platform, Meesho will sack 15% workforce or 251 employees. This is the second round the company will cut jobs in just over a year. Earlier, the company laid off 150 workers around the same time last year.
The 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.”
According to money control CEO Vidit Aatrey said in his email, “As leaders, we made judgment errors in over-hiring ahead of the curve.”
“At the same time, we could have run our org structure in a more effective and lean manner overall,” Vidit Aatrey added.
A Meesho spokesperson said in a statement, “We are committed to ensuring all those impacted have our 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 statement added.
Apparently, Major tech companies are laying off employees exponentially due to economic uncertainties. The move of layoffs is part of a larger trend of tech companies cutting jobs and slowing hiring as investors become increasingly fearful of a recession. Tech companies have either frozen the hiring process or laid off many employees.
Recently, the consulting giant Accenture shocked the industry by announcing plans to trim its workforce by 19,000 globally including India over the next 18 months.
Amazon sacked 27,000 employees in the last three months. Recently, the company announced to layoff of 9000 employees. The major companies that laid off employees include Infosys, Amazon, Google, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
As per trueup, So far in 2023, there have been 884 layoffs at tech companies with 261,666 people impacted (2,093 people per day). In 2022, there were 1,557 layoffs at tech companies and 243,318 people impacted (667 people per day).
