Meesho lays off 15% workforce; 251 employees affected

Homegrown social commerce startup, Meesho has slashed its workforce by 15%, implying that nearly 251 employees are subjected to the job cut, owing to “judgement errors in over-hiring.”

As per several media reports citing Vidit Aatrey, CEO, Meesho, the reason behind the move was the challenging macroeconomic environment.

“I have some difficult news to share today. We are reducing the size of the Meesho workforce by 15%, affecting 251 employees,” he mentioned in an email to his employees.

Additionally, he also pointed out that the company had made some judgement 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. Our spans and layers were inflated, and this could have unintended consequences on our speed to execute,” he added.

With this, Aatrey also expressed confidence in Meesho as a business and stated that the company will stay strong despite the economic reality that is here to stay.

He also shared the viewpoint that even when the company tracked its plans, the macro climate undeniably and considerably changed, as a result of which, Meesho had to accelerate its timeline to profitability as part of Project Redbull, while readjusting their GMV growth goals to 30% YoY.

“While our cash reserves buffer us well for these harsh circumstances, we need to stay highly prudent on the cost front,” he said.

As per Meesho, the affected employees will receive full pay for their notice period and an additional one month, along with a tenure-based payment of 15 days for every completed year of service, rounded up to the nearest year.

Furthermore, the company will also extend family insurance coverage till March 31, 2024 and relax Employee Stock Ownership Plan vesting norms to make it easier for the furloughed employees to remain shareholders in Meesho.

Earlier too, in April 2022, Meesho had let go of 150 employees as part of the restructuring of its grocery business Farmiso.

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