Ono of the leading e-commerce companies Meesho has laid off around 250 employees which is around 15 per cent of its workforce. The step has been seeing as cutting costs and boosting profits. The company is looking at a leaner organisational structure to achieve sustained profitability.
The Bengaluru-based company has said that it made judgement errors in over-hiring ahead of the curve.
Prior to this, Meesho also laid off 150 workers around the same time last year.
Vidit Atre, founder and CEO of the company sent an email to the employees informing them that the employees who are being retrenched will get one month’s additional pay along with the notice period.
They will also get the benefit of ESOPs. In the mail Vidit said that the company grew 10 times from 2020 to 2022, although the challenges have increased rapidly in the past. The company is giving special emphasis on keeping the cost under control.
It can be mentioned that Jefferies brokerage firm has said recently that Meesho has been growing ahead of the e-commerce market. Its current monthly active users (MAUs) count is about 55 per cent of Amazon and Flipkart.
Meesho had around 120 million average monthly users in 2022. It added roughly 100 million MAUs, much higher than additions by peers.
