A B2B trade platform, designed specifically for small & medium businesses in India, Udaan to lay off 100-150 employees. These are roughly 10% of the startup’s entire workforce.
According to Moneycontrol report, the development comes just days after it had raised $340 million in a series E funding round led by M&G Plc,
The employees from peons to senior executives and marketing, Finance, Category, and Operations are some divisions that have been impacted. However, the company has not commented on the layoffs.
A company spokesperson said, “Over the last few years, we have made significant investments to build a solid and sustainable business.”
“We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably, and further improve customer experience,” a company added.
Udaan earlier laid off 180 employees in June 2022. Earlier, Ed-tech startups Unacademy, Vedantu, FrontRow, Lido, and Frontrow among others have cumulatively retrenched thousands of employees this year.
On the other hand, IT majors, like Intel Corporation, Snap, Microsoft, Twitter, TikTok, and Google have either laid off employees or frozen new hiring.
IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe, the biggest markets for the sector.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.
As per Trueup so far in 2023, there have been 1,967 layoffs at tech companies with 419,538 people impacted (1,192 people per day).
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