Meesho lays off over 250 employees amid restructuring bid
1 min read . Updated: 05 May 2023, 05:17 PM IST
PremiumE-commerce firm Meesho has laid off 251 employees constituting 15% of its workforce to cut costs and as part of its efforts to achieve profitability.
E-commerce website Meesho undertook a third round of layoffs on Friday, firing 15% of workers. The decision was shared by founder and CEO Vidit Aatrey via an email on Friday. 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.
The company had grown extensively amid the COVID-19 pandemic, backed by tailwinds and aggressive investments. The SoftBank-backed firm said that it was now turning towards a “leaner organisational structure" in order to achieve sustained profitability.
"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," Aatrey said.