Meesho founder and CEO Vidit Aatrey said an email to staffers that it is now faced with the hard truth of aligning people costs with the new projections for business.
Softbank-backed e-commerce unicorn Meesho has announced its second round of job cuts in just over a year, leading to the termination of 251 employees, which represents around 15 percent of its workforce.
In an email dated May 5, co-founder and CEO Vidit Aatrey informed the company’s staff about the decision, citing a challenging macroeconomic environment. Moneycontrol has reviewed a copy of the email.
The Bengaluru-based company, which was among the first few new-age companies to slash jobs in a tough funding environment, had last year let go of 250 employees from its grocery arm, which was rebranded to Superstore from Farmiso. The latest round is however the first one at Meesho’s marketplace model, its core business.
“As leaders, we made 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,” Aatrey said in his email.
“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. We should have done better here,” he added.
The employees impacted by the recent decision will receive an email in the next 60 minutes, letting them know about the status of their employment with the company. Then, meeting links will be shared personally to facilitate one on one conversations between the staff members and their managers, according to the email. Outgoing workers will, however, have access to Gmail and Slack channels till Sunday evening.