Meesho, an e-commerce startup, announced to its staff at a town hall meeting on Friday morning that it had fired 251 employees to become sustainable amid a larger industry reset in technology.
This would amount to 15% of the team’s overall strength.
“We have taken a difficult decision to part ways with 251 Meeshoites constituting 15% of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability,” the SoftBank-backed firm said in a statement.
Meesho cofounder & CEO Vidit Aatrey told employees in a note that the company 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. Our spans and layers were inflated, and this could have unintended consequences on our speed to execute.”
“While we are confident that Meesho business will stay strong, the economic reality is here to stay. We are now faced with the hard truth of aligning our people costs with the new projections for our business,” he added.
“I want to reiterate that the decision around who is impacted has nothing to do with performance, and only to do with our business reality. That we are losing the best, hard-working talent as a result of this decision is not lost on me,” Aatrey told employees.
