Start-ups starts sacking more employees to manage cost

Indian start-ups have received more than $42 billion in VC funding last year alone. It seems the flow of funds did not assist employers from cutting the number of employees.
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The professional networking platforms like LinkedIn, which is owned by Microsoft, are full with raging posts from employees who have been asked to leave, IANS reported.

In total, over 6,000 people have been shown the door in the name of restructuring and cost cutting as startups and unicorns shut non-performing verticals, cut marketing spend, and freezing hiring.

Edtech major BYJU’s-run WhiteHat Jr forced more than 1,000 employees to resign after they were either asked to join at different locations or return to Mumbai or Gurugram.

WhiteHat Jr asked its 3,000 sales and support employees to report to either Mumbai or Gurugram-Delhi (out of its 5,000-strong workforce that includes teachers which are on contractual basis) in April, leading to mass resignations.

Several sales executives have also quit BYJU’s after they were asked by the HR team to join various locations on relatively small salaries.

Edtech platform Unacademy has laid off nearly 600 employees, contractual workers and educators — about 10 percent of its 6,000-strong workforce across the group — in April.

Unacademy’s co-founder and CEO Gaurav Munjal has predicted a funding winter that can last as long as 18 months, saying it will cut costs wherever required to weather the dry spell and become profitable.

Vedantu, another online learning company, has fired more than 424 workers or 7 percent of employee base owing to financial constraints.

Vamsi Krishna, CEO and co-founder of Vedantu, believes that the external environment is tough as the Russia-Ukraine war, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India.

Healthtech platform mFine has laid off over 50 percent of its total workforce (more than 500 employees) from operations, product and marketing verticals, according to sources.

CARS24, pre-owned e-commerce platform, has asked around 600 employees to go on the basis of poor performance. CARS24 said these are performance-linked exits that happen every year. CARS24 was last valued at $3.3 billion, about double the valuation from its previous round in September 2021.

Zomato-owned Blinkit (earlier Grofers) has laid off more than 1,500-1,600 employees due to costcutting in cities like Mumbai, Hyderabad, and Kolkata looking to cut costs and reduce cash burn.

Zomato invested $100 million in Blinkit for 10 percent stake at a valuation of $1 billion.

E-commerce platform Meesho has fired over 150 employees from its grocery business as part of restructuring.

Furniture and lifestyle rental brand Furlenco has laid off over 180 employees as it scaled operations in several parts of the country.

Social commerce startup Trell asked more than 300 employees to go as it had to do some right-sizing.

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