As part of its efforts to achieve sustained profitability through a leaner organisational structure, Meesho, an online shopping platform, has announced its decision to lay off 15% of its workforce or 251 employees. The company has assured that the affected employees will be provided with a separation package that includes a one-time severance payment, continued insurance benefits, job placement support, and relaxed ESOP vesting norms.
According to Meesho spokesperson, the severance package includes full pay for the notice period, an additional one month's pay, and tenure-based payment. Family insurance coverage will be extended until March 31, 2024. In an email to the staff, Meesho co-founder and CEO Vidit Aatrey acknowledged the company's mistakes in over-hiring and running its org structure in a less effective and lean manner overall.
The latest round of layoffs is the first one at Meesho's marketplace model, it's core business after it laid off 250 employees from its grocery arm, which was rebranded as Superstore from Farmiso in 2022. Indian startups have been reducing their workforce since 2022 and have laid off over 6,000 employees in 2023 while the number goes past 20,000 for 2022, reflecting the impact of the pandemic on the economy.
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