On Friday, ecommerce startup Meesho told its employees that the company would be laying off around 251 staff. This would amount to 15 per cent of the workforce.
In April 2022, Meesho fired about 150 employees as it restructured its grocery business, Farmiso. However, several media reports said that the total number of employees impacted was around 400 at the time.
Vidit Aatrey, Co-founder and CEO of Meesho, told staff in a note that the company made ‘judgement errors’ by recruiting ahead of the curve. At the same time, we could have run our organisational structure more efficiently and effectively overall. “Our spans and layers were inflated, and this could have unintended consequences for our speed to execute.”
While we are confident that Meesho’s business will continue to thrive, economic reality is unavoidable. We are now faced with the difficult task of matching our people costs with our new business projections, he continued.