Meesho cuts 15% of workforce, lays off 251 employees

• ByStartupStory     |    May 5, 2023

Meesho, an ecommerce startup, has announced the layoff of 251 employees in an effort to achieve sustainability in light of the ongoing technology industry reset. The company revealed the decision during a town hall meeting with its staff on Friday.

Meesho, an ecommerce startup backed by SoftBank, has announced that it is letting go of 251 employees, which represents around 15% of its total workforce. The company explained in a statement that this move was made in order to work towards sustained profitability and establish a more streamlined organizational structure. The decision to lay off staff comes as part of a larger industry-wide trend towards resetting business models and achieving greater financial stability.

According to sources, in April 2022, Meesho restructured its grocery business Farmiso, resulting in the layoff of 150 employees. However, reports suggested that the actual number of employees affected was around 400 at the time.

The CEO of Meesho, Vidit Aatrey, acknowledged in a note to employees that the company made “judgment errors” in over-hiring ahead of the curve, and could have run its organizational structure in a more effective and lean manner. “Our spans and layers were inflated, and this could have unintended consequences on our speed to execute,” he said.

Meesho CEO Vidit Aatrey acknowledged the economic reality and stated that the company needs to align its people costs with the new business projections. He emphasized that the decision to lay off employees was not based on their performance but rather on the company’s business reality. Aatrey expressed his regret over losing talented and hard-working employees due to the decision. Despite the challenges, he expressed confidence that Meesho’s business will remain strong.

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