In Second Round Of Layoffs, Microsoft-Backed Fareye Fires 90 Employees: Report
- ByStartupStory | February 3, 2023
In its second round of job layoffs in as many as eight months, the software as a service (SaaS) logistics start-up FAREYE has let go of 90 people, according to Inc42.
Employees from a variety of areas, including IT, sales, product, and HRBP, were apparently affected by the most recent wave of layoffs.
Kushal Nahata, co-founder and CEO of FarEye, stated that the personnel reduction was required in order to continue meeting the business demands of clients and to match the company’s business plan with market demand. He highlighted macroeconomic challenges and said that firms and consumers had cut down on spending, which also had an effect on the start-up.
In compliance with local rules, FarEye has provided severance compensation to the impacted workers. The business has offices throughout a number of nations, including India, the US, the UK, and Dubai.
According to a previous report from Inc42, FarEye laid off over 250 workers across departments in June of last year. The startup’s net loss increased nearly thrice to Rs 232.5 crore in its most recent fiscal year from Rs 79.8 crore in the year prior. Expenses increased 129% to Rs 361.3 crore in the same time, despite a 53% growth in operating revenue to Rs 97.6 crore.
The start-up spent Rs 231.6 crore on staff wages, provident fund (PF) contributions, gratuities, and other employee welfare perks, a 125 per cent rise from Rs 102.8 crore in the previous year, accounting for 64% of total costs.
The most recent round of layoffs at FarEye are due to macroeconomic difficulties that have restricted consumer and company expenditure. The firm intends to broaden its presence in new global areas and sectors while maintaining a strong focus on product innovation and client solutions. The startup’s revenue from operations has expanded despite the net loss, and it is supported by a number of important investors, including Microsoft’s M12 Fund.
FarEye, which was established in 2013 by Nahata, Gaurav Srivastava, and Gautam Kumar, provides automation software that enables logistics companies to plan and dispatch jobs, keep an eye on their execution, and evaluate performance in real time. This software helps logistics companies address challenging last-mile delivery issues.
Major corporations including Tata Steel, Amway, Hilti, and Domino’s Pizza are among its clientele. In 2021, TCV and Dragoneer Investment Group led a $100 million Series E investment round for the business, which included included support from Elevation Capital, Eight Roads Ventures, HoneyWell, and Microsoft’s M12 Fund.
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