Meesho

Meesho, an Indian social commerce startup, laid off 251 employees, representing 15% of its workforce, on Friday to accelerate its timeline to profitability and work with a leaner organizational structure. This is the second round of job cuts, following 150 layoffs a year ago, as the company aims to reduce cash burn and achieve EBIDTA breakeven in 2023.

In May 2023, Indian e-commerce unicorn Meesho announced its second round of layoffs in just over a year, letting go of 251 employees, which represents approximately 15% of its workforce. CEO Vidit Aatrey communicated the decision via email, citing a challenging macroeconomic environment and admitting to judgment errors in over-hiring ahead of the curve. He noted the company's organizational structure had become inflated, affecting execution speed, and stated the need to align people costs with new business projections. This round marks the first job cuts within Meesho's core marketplace model, following a previous reduction of 250 employees from its grocery arm in 2022. The Bengaluru-based startup, valued at $4.9 billion and backed by investors like SoftBank and Sequoia, is among the new-age companies adjusting to a tougher funding climate.

Social commerce platform Meesho laid off approximately 300 employees in late August 2022 as it wound down its grocery business, 'Superstore,' in over 90% of its operational cities. This decision was driven by low revenue and high cash burn in the grocery segment. The layoffs followed earlier workforce reductions of about 150 in April 2022 and 200 in April 2020, as the company, which serves millions of users and small businesses, refocused on its core marketplace. The affected employees reportedly received a severance package of two months' salary.

Ecommerce unicorn Meesho, backed by SoftBank and valued at $4.9 billion, has laid off 150 full-time employees as part of a restructuring of its Meesho Superstore grocery delivery service. This move, occurring in early 2022, follows the company's massive $870 million fundraise in 2021, which included a $570 million round in September aimed at expanding the grocery business. The layoffs are attributed to scaling back after rapid pandemic-era growth and removing redundancies to boost efficiency, with the company emphasizing that its core marketplace business remains unaffected and continues to hire. Meesho, which serves millions of entrepreneurs and customers, reported significant revenue growth but also saw losses increase, prompting this adjustment to streamline operations.

In April 2020, the social commerce startup Meesho laid off over 200 employees, representing more than 28% of its then 700-strong workforce. This drastic measure was a direct response to the severe business decline caused by the Covid-19 pandemic and the nationwide lockdown in India, which halted sales of non-essential items. The layoffs, advised by investors, primarily affected key account managers responsible for vendor onboarding, as well as staff in customer support, operations, and marketing. The company aimed to convert fixed salary costs into variable expenses by outsourcing vendor acquisition. Additionally, Meesho was considering significant salary cuts for senior employees to navigate the financial crisis, highlighting the pandemic's severe impact on the e-commerce and social commerce industry.