Meesho Fires 251 Workers Stating, Recruiting Was A Mistake!

Meesho, the widely popular e-commerce startup that is SoftBank-backed is set to fire 251 of its workers. According to the revolving news, 15 percent of Meesho employees have faced layoffs. The labor turnover rate has increased in recent times. The whole globe is the victim of increased rate of labor turnover lately.

Vidit Aatrey, the Chief Executive Officer and co-founder of the company has sent emails to its workers regarding the termination of their job, as reported by ETRetail. However, due to the restructuring of a subsidiary grocery firm, Farmiso the organization let go of nearly 150 workers in April 2022.

The email written by Aatrey read, “I have difficult news to share…We are reducing the size of the Meesho workforce by 15%, affecting 251 employees.”

Aatrey mentioned the reasons behind the layoff as the overpopulation of workers. According to him, the HR manager committed a huge mistake by hiring more than the requirement. Currently, more workers were present than the need and requirements of the organization. However, the layoff would help the organization in managing the resources more skillfully, effectively, and in a lean manner.

Cost Cutting By Meesho

It’s been twelve months, the e-commerce startup is trying to cut its cost. Meesho has lately started its cost-cutting strategy to generate profit by the middle of 2023. Under the project, Redbull, Meesho has skyrocketed its timeline so that it can earn more profit. The e-commerce website is currently trying to readjust its GMV growth goals. The current Target set is 30 percent YoY under the ongoing project.

“We grew by 10X from 2020 to 2022, helped by COVID tailwinds and aggressive investments. Even as we tracked our plans, the macro climate undeniably and considerably changed,” Aatrey added.

The company, in an official statement, said, “We are committed to ensuring all those impacted have our full support and will be provided a separation package that includes a one-time severance payment of 2.5 to 9 months (depending on tenor and designation), continued insurance benefits, job placement support and accelerated vesting of ESOPs.”